UK Company Ownership

[Tim Jones]

I am wondering if the following ownership combinations can exist:

- Circular relation: A owns 51% of B and B owns 51% of A.
- Cross relation: A owns B, C owns D, D owns A and B owns C.

And wondering if anyone has some literature on the intricacies of the company ownership please?

 

[kirby]

Go whole-hog on this and assume two companies acquire 100% of each others stock. Now no company is solely in control and effectively you have a 50-50 partnership. You've created a pushme-pullyou like in dr Dolittle or a cat-dog like the cartoon. Interesting but has no direction.

 

[Tim Jones]

Thanks Kirby

So does that mean that in the above two examples given, that they are effectively 50/50 partnerships, even though the % ownership is not exactly 50%?

 

[kirby]

Yes, they each have the same amount of control over each other. So 50/50. Look up the "Pac-Man defense" strategy where a company targeted for acquisition tries to acquire the acquirer.