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    Hi all, just curious. Who is it at the target company that approves a takeover and righs issues in a company - the board or the shareholders (by a resolution)?

    If its the board, then it seems unfair as the current shareholders might get diluted even though it may be against their wishes!

    Thanks!
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    If you're talking about public companies, the shareholders are the limited liability owners of the firm. In the event of a takeover or rights issue, it's the shareholders that make the decision, by a majority vote. In the event of a rights issue, the shareholders have the right to refuse to take up new shares. Does that answer your question?
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    Board puts it to shareholders, though depending on how its structured can need as little as 50% + 1 share. So in most cases there'll be a minority who are opposed to it but have no choice (is a bit more complicated than that; 50% vote on a t/o for eg means the acquiring co gets control, but is left with some minority shareholders).

    For a rights issue, if you don't want to take up the rights, you'd normally get a payment from the sale of the nil-paids.
 
 
 
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