Salamat, Mr. Ligalig, niining topic.
Una sa tanan, mapasalamaton ako sa padayon nga pagpakabana sa mga Bol-anon niining mao nga isyu.
Please allow me to add on the statement that there is no need for the provincial government to waive its right to buy-back the Salcon group's 70% equity in favor of the city government before the latter could make its offer to buy.
A waiver of the the "right to first refusal" is only necessary when we are talking about unsubscribed shares. The "right to first refusal" is intended to prevent the dilution or the equity of a shareholder. For example, a corporation has 2,000 shares of which only 1,000 shares are subscribed (meaning: owned). If the board of directors decide to increase the company's capital by selling the remaining 1,000 shares (which are still unsubscribed; no owner), the existing shareholders have the right to exercise the right to be the first to buy these unsubscribed shares in accordance with the proportion of their existing equity. So, if one stockholder owns 10 shares, he is entitled to be given preference to buy 10 shares out from the remaining 1,000 shares. Other interested investors can only buy from the remaining 1,000 shares when the existing shareholder will refuse to buy (hence the term right to first refusal). In the same manner, existing shareholders can only buy additional shares in excess of the proportion of their existing equity when the other shareholders are not interested. So, when a share holder has an existing 800 shares and he wants to buy 900 shares from the 1,000 shares being offered, he can only buy the excess of 100 shares when the other shareholders interpose no objection.
It's a different thing when the shares are already subscribed because the stockholder can sell it to whoever he wants. In this event, there is no diminution of the equity of the other existing shareholders. The proportion of their equity remains the same. Unless, of course, it is a closed corporation wherein there is a provision in the articles of incorporation that any sale of shares of stock can only be made to the existing shareholders or incorporators.
The 70% to be bought back is already subscribed by the Salcon group.
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