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Giving the founder control prevents other investors from taking control of the company and doing things that are worse than what the founder would do.


This would be perfectly fine if founder keeps 51% of shares.

It should not be possible to have it both ways as a founder: own minority of shares and yet keep the control.

You want full control? Then do not dilute yourself.

It used to be normal for the founder(s) to have the most (but not the majority) of the shares. See Gates/Allen at Microsoft.

This meant that usually shareholder vote went their way, but there was a possibility that you could get ousted. See Jobs at Apple circa 1985.

It should not be possible to be the absolute king of a publicly owned company while owning less than 50% of a company.




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