Kure Technologies Inc V.KUR.H

RE: Getting Around Foreign Ownership Restrictions

[DAbramov]

lookidontbs: I disagree with your assessment of 49% ownership. 49% ownership only relates to the amount of "control or decision making in the company's direction and management". Therefore, theoretically speaking, a company can have 200 million suboridinate voting (SV) shares outstanding and 10 million multiple voting (MV) outstanding. If each MV share is equal to 150x more votes than a single SV share, then that means the holders of MV shares have effective control of the company as per the voting structure becomes: 1.5 billion votes for MV shareholders 200 million votes for SV shareholders However, the dividends may be distributed equally to all shareholders. As such, a company that has $210M as net income in one year, will offer a $1/share dividend to all shareholders. The foreign entity that may/will hold the SV shares will therefore reap the financial benefits without directing control of the company. D-man