Re:EVGA terminates Nvidia partnership [video]
by derefr on Friday September 16, 2022 @09:46PM
(#32874071)
I know there's probably a reason this isn't done, but: could you not create a new, worthless corporation; distribute its worthless shares to the new employee-owners; and then have this holding corp acquire EVGA, thus instantaneously inflating the value of the already-held equity to ~EVGA's share price?
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Re:EVGA terminates Nvidia partnership [video]
by Arainach on Friday September 16, 2022 @11:35PM
(#32874542)
Acquire using what assets? You're proposing fraud.
Re:EVGA terminates Nvidia partnership [video]
by derefr on Saturday September 17, 2022 @12:08AM
(#32874686)
You're interpreting "acquire" as "purchase", but "acquire" just means "acquire." You, as the majority shareholders of a company, are perfectly within your rights to give your equity in the corporation you own, to another corporation, as a gift or donation. (Or, if you like, "for consideration" of $1.)
And make no mistake, that's already exactly what's being proposed here, in making EVGA an employee-owned corporation: a gift of equity from the current shareholders, to a set of new shareholders.
The only difference in what I'm describing is that there's a trust / holding corporation in between the givers and the recipients.
Re:EVGA terminates Nvidia partnership [video]
by taneq on Saturday September 17, 2022 @04:52AM
(#32875911)
Would the shell company not then owe taxes on the value of the corporation it ‘acquired’, regardless of the dollar value of the acquisition?
Re:EVGA terminates Nvidia partnership [video]
by Arainach on Sunday September 18, 2022 @03:04PM
(#32890436)
If you ever think of a financial trick to avoid taxes and say "why couldn't companies do X", the answer without fail is "because it's illegal and you aren't aware of the specific law you're violating".
If this was legal all sorts of companies would do this all the time.