I own company A 100 percent of it, I own 60 percent of company B, other investors own the other 40 percent. The board of both companies have to legally do what is best for ALL investors of each company. Company B is worth 20 billion dollars. I have control of company B so I tell all the other investors that I am selling company B to my other company, company A for 1 billion dollars, and I declare that this is a GREAT DEAL for all of company B shareholders. and that they have to sell and they have no choice because I have 60 percent.
Legal Analysis Both Company A and B have broken more laws that I can possibly count and will be sued for billions and billions in damages, does this simple scenario sound like any two companies that you know of????? Let the lawsuits begin, Justice Department, Feds, Sec , everybody will be working to sue and press criminal charges against the boards of both companies!!!