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Why do companies have boards that are allowed to overrule on the owner??

posted 8 years ago by kellymariekitty
6 replies | jump to latest

It is tony starks company so why do the board have any say at all? Surely if it's Tony's company the board can get stuffed!!
He owns the firm, he created the company so why should he have to justify his actions for the board. If he wants to *beep* down the firm, that hits choice, it's his business!!
I've never understood tHAt in companies when the owner can get kicked out of his own company??? Why doesn't he fire them if they disagree with him cos they can't kick him out then take his business away from him.
and why doesn't he fire obadire when he realises he hasn't got his best interests at all.

[–] Zero_Wolf 8 years ago

It only happens when companies go public, i.e. sell publicly owned stocks.

Often, one person will hold 50%+1 of the stocks, and the rest will be divided up by everyone else, that way that one person will always be able to overrule everyone else. And that one person is often the founder, owner, and president of the company.

In the case of Iron Man, it was Stark and Stane combined who owned enough stock in Stark Industries to overrule everyone else, but individually neither held a majority. So, Stane got the rest of the stockholders on his side (after his attempt to have Tony killed failed), and together they controlled a majority of the company's stock.

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[–] ATG6 (3000) 4 years ago

The board of directors is supposed to be made up of smart, accomplished people who have experience running similar companies and perspective on the market. They are there to stop the CEO from running the company into the ground with bad choices or risky bets.

[–] bigbadwolf666 (4707) 4 years ago

But they always do.

[–] millsey72 (10285) 4 years ago

Looks like you discovered a plot hole

[–] PaladinNJ (21510) 4 years ago

It happened in real life with Papa John's. The board voted John Schnatter completely out of the company.

[–] melloeric (28) a year ago

Its real but so bizarre to me. Imagine building a multimillion dollar company on your own and having the people you appoint to manage it decide to fire you. Papa Johns and Mens Wearhouse are what come to mind.