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A comment on Denmark: No aid for companies which pay out dividends or are reg. in tax havens. Parent comment

Re:Denmark: No aid for companies which pay out dividends or ... by caseysoftware on Monday April 20, 2020 @12:23PM (#22925379)
> The government should take a small ownership stake in companies that receive that kind of money.

I'm only familiar with US law, not Danish so question for you here.

Under US law, when a company closes (bankruptcy, acquired, etc), the common shareholders are last in line for payments after debt holders and preferred shareholders. Does Danish law have a similar provision?

If so, wouldn't being a debtor be a stronger position? Especially since the governments get to set repayment terms.

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Re:Denmark: No aid for companies which pay out dividends or ... by flexie on Monday April 20, 2020 @12:31PM (#22925472)
Yes, if we look at the bankruptcy scenario only (and provided the debt is not secured). But the shareholder is typically better off if there is an upside. What we saw in the last financial crisis is that large corporations quickly paid off their loans and the government - the taxpayers - missed out on the upside.

The natural way to give government ownership would be through convertibles so they could chose whether to convert.

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Re:Denmark: No aid for companies which pay out dividends or ... by caseysoftware on Monday April 20, 2020 @02:39PM (#22926915)
That makes total sense, thanks for the info and perspective.
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