In today’s briefing:
- The Problem Isn’t for the Subsidiary Shareholders but for the Parent Company Shareholders
The Problem Isn’t for the Subsidiary Shareholders but for the Parent Company Shareholders
- Both Kappa Kreate and ATOM are almost completely controlled by their parent company, ColoWide, and we cannot expect corporate governance practices that would actually be a relief to minority shareholders.
- With the parent company in full control, the subsidiary’s minority shareholders are likely to be aware that the interests of the parent take precedence over those of the minority shareholders.
- Parent company shareholders shouldn’t tolerate continuing to own subsidiaries that damage their interests. The problem isn’t a problem of the interests of the subsidiary’s shareholders, but of the parent’s shareholders.
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