QED Connect Inc (QEDN)

[Greed Kills]

They so desperately want to get their money back that they are actually arguing that Kate has full discretion to make their shareholder interests worthless through dilution. Could you imagine the CEO of Home Depot increasing the authorized shares by ten fold and then using the proceeds from the issued shares to pay for his housing and go on vacation.

Shareholders have rights. A CEO cannot make a shareholders ownership interest worthless through dilution without a majority of the shareholders approving of the dilution.

Yes, some classes of preferred stock does have rights to vote for the board. This makes since as preferred stock as preferred rights to payment of dividends and in liquidation. However, preferred stockholders cannot dilute the common stockholders shareholder interest.