Raviga owns 5% of Pied Piper

>Raviga owns 5% of Pied Piper
>Somehow have full rights over what happens with the company

Can somebody please explain this to me?

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muh board seats

Season 1 of this was one of the worst comedies I've ever had the displeasure of watching.

this
they've gone through that like 50 times in the show dude how could this not be clear to you

youtube.com/watch?v=qC9D-paXcHU

>We didn't do anything wrong
Is Gavin redpilled?

Mike Judge is

He's man with common sense.

5%? As far as I know, when Peter Gregory cut the deal with Richard it was 60% Pied Piper, 40% Raviga (that was 20% Peter Gregory and 20% Monica). When they were broke and Raviga, although still owning 40%, decided not to back them up because of their trial against Gavin Belson, Richard sold 20% of what belonged to Pied Piper to Russ Hanneman (the douche billionaire), so at that point it was everything divided in 5 parts: Laurie Bream (who replaced Peter Gregory once he died), Richard, Monica, Russ Hanneman and Elrich. Soon Laurie bought Russ' shares for 15 million (so he would be a billionaire again), and that meant that 60% belonged to Raviga and 40% to Pied Piper. That's how Raviga owns it.
It's not that difficult.
1) PP 60%, Raviga 40%: initial offer.
2) PP 40%, Russ 20%, Raviga 40%: PP sells 20% to Russ in order to be financed.
3) PP 40%, Raviga 60%: Raviga buys the 20% that belonged to Russ and now decides what happens with the company.
As it is right now, it all boils down to whether if Monica decides to be her boss' pawn or to risk it and support Richard whenever there's a sensitive matter. And, of course, Elrich not being a dick.

Nobody cares, Reddit.

Fuck off.

He says 200.000 for 5%.

40% owned by Pied Piper means 50/50 between Richard and Ehrlich?

Then with Peter Gregory's death, Laurie made a bigger offer after Richard went to several other incubators.

You're so fucking dumb.
They just have control of the majority of board seats. This is a plot point every other episode, how do you still not get it?

Reddit actually loves SV. They have their own sub over there. For me it's the best comedy on television (until Vice Principals, probably)

They have subs for everything,retard.

They have their own sub for virtually every show.

They have a sub for discussing how fucking dumb you are.

D R O P P E D

What i don't really understand here is, how are the board seats calculated? Once you have shares you get a board seat, no matter how much (in percent) those shares are worth?

I remember at the end of season 2 Laurie said that she had bought Russ' board seat on Pied Piper, why is the number of board seats not going back to 4 when there are only 4 shareholders now?
What if 2 new people join Pied Piper's shareholders and there are now 7 board seats? Could Laurie just buy them and have a majority control?

Sup Forums
>Silicon valley
>Veep
Reddit
>Parks and rec
>Rick and morty

>Once you have shares you get a board seat, no matter how much (in percent) those shares are worth?

Your vote in the board decisions is worth the same amount as your shares are in percent. Laurie/Raviga owns 40% of Pied Piper so her vote is worth 40%. Erlich, Monica and Richard's votes are all worth 20% each.

>why is the number of board seats not going back to 4 when there are only 4 shareholders now?

It is, right now there are only 4 board members who vote on things (Erlich, Richard, Monica and Laurie)

>What if 2 new people join Pied Piper's shareholders and there are now 7 board seats? Could Laurie just buy them and have a majority control?

The overall percentages of the ownership shares would change. If 2 new people joined with 10% each then the new shares in percent would be 35% for Laurie/Raviga, 15% each for Richard, Erlich and Monica and 10% each for the new guys. In voting you again need a majority of >50% to win the vote, so Laurie and the 2 new guys (having a total vote count of 55%) could outvote the rest.

Sup Forums
>Game of Thrones
Reddit
>everything else

If Sup Forums loves Veep then how come there are never threads about it?

lol, I don't know how business works the thread

A board of directors is different from owners of a company. Erlich has only 10% if I recall correctly and Monica is part of Raviga so she doesn't actually have a seat herself. Russ had 2 seats that he gave to Laurie totalling 3 for Raviga. All votes from a board member are worth the same but new board members need to be approved by the board so to add more board members would require Monica to betray Lauire again and then lose her board seat.

DUDE ZUNE BAD LMAO

Questions for americlaps, is that squatting situation even remotely plausible?

Sup Forums
>Peep Show

Reddit
>Always Sunny

If richard owns 51 percent of pied piper he could call for a quorum vote then call for a vote to dismiss all board members and to rewrite the articles of organization and articles of incorporation.

Even if Richard doesnt have a majority, he likely does with all the other employee shares.

There is no reason why he isnt the ceo with 51percent.

People are able to get ceos fired and boards replaced with 10 percent of the vote and a request for a shareholder proxy vote of no confidence.

This 2nd scenario is how Carl Ichan takes over companies.

Source, any Corporations Law course in law or business school.

is that possible if at the time of the creation of the company the rules were set in such a way that Richard couldn't call for every other vote to turn against Raviga?

When the series started it seemed like Peter Gregory just offered his money with a lot of corporate strings attached and only executive freedom for Richard, also his lawyer was a jackass.

user makes a company he puts 1000$ in it and gets 10 shares for it. (Every share is worth 100$)

He needs more money to start his dank meme business, so he seeks "angel investors" (Hanemann). He finds an AI that actually believes your dankmeme company could be worth $100k on the market, you only have 10 shares though, so you create 90 more (now the company has 100 shares) and sell him these shares for 100$ each (you can try selling it for more, but noone will buy it, you can also try selling less shares, depending how much money you need, most don't sell more than 50% of their company, but also a lot of corporations will only settle if it is more than 50%). Now your company has $100k capital, and 100 shares, you own 10% of the company and the AI owns 90%. (This is only an example of course, so you fags can grasp the concept, however some people do this because they know pepe will crash so fuck dankmemes, money is where it's at)

Now board seats are offered by the amount of the voting shares you own. You could sell the AI only 10 voting shares and the 80 rest shares are non-voting, so eventhough he owns 90% of the company, you still both own 20 voting shares with 10 of the shares owned by each. (This is something no person would ever do, namely investing a large sum of money and not getting enough voting rights, but just as an example to grasp the concept)

Iirc, Richard demanded Monica to have a board seat as part of the second deal with Raviga.

It's Raviga's seat but the deal was that Monica would be the one voting for it.

It all depends on how the company's by-laws are written
>he never wrote by-laws

oops

Thank you for taking the time to write this

Venture capitalists take their own classes of preferred stock, and the bylaws/agreements are set up to give them particular board seats regardless of how the "majority" stockholders vote.

Source: I work at a company with these arrangements in place.

Hey Dinesh, nice chain

Yes, in California. Owned a property out there and that's how shit works. This asshole would intentionally run cold water day and night just to fuck me over harder and I couldn't do a damn thing about it.
Took a year and a half to even get the thing to court, two years before he was finally evicted.
Suffice to say, I don't rent out property in California anymore.

what the fuck, how is this acceptable?

>I, Richard Penis Hendricks, have written a data compression program. It is the best in all the valley of the sillycon. My company is named Pried Pooper. What do you think of that, Gaveen?

States determine this shit. California has all sorts of stupid-ass laws for who knows what reason.
It's absolutely 100% not acceptable but no one in California seems to give 2 fucks about changing this. Maybe it's because the renters far outnumber the landlords or something, who knows.

Best comedy series in years