A Post Collection of IHUB's Greatest Hits

[di4]

Posted by: GordonGekko1982 Date: Monday, March 26, 2007 8:24:09 AM
In reply to: serfdom who wrote msg# 75424 Post # of 82354 [Send a link via email]
Oh for Pennys any state is red-flag lol. Trading doesn't really matter which state it's in, while investing does: but the fact that only about 1 in 10,000 Pennies is ever worth true investment means that you're better off elsewhere regardless! HOWEVER, for pennies the real difference comes down to liability: Nevada/Florida don't have D&O liability except for fraud, regardless of good faith, and if there is fraud - such as here - the government is the first lienholder. Delaware Corp's require D&O good faith, and the reason most pennies stay away is because they can't reverse split, keep the authorized, and then issue an employee "retirement plan" with the proceeds in terms of good faith. Furthermore, notice and voting is still required in most cases, unlike the states that have "surprise" reverse splits. Then again, in Pennyland, once the RS PR hits, or someone finds the filing, its a knockout punch.