bASIC-Mining was originally set up that way by me last year to avoid requesting the issuance of additional shares if needed in the future. At the time it was not at all unusual to do it that way. Not one share has ever left the asset issuer account without a shareholder vote and majority approval. Not. One. Ever. Not even for a millisecond. This is easily checked by anyone at any time by simply checking the number of shares outstanding.
50%+1 in one hands can permanent vote and majority approval and drop into market new shares. Without special reglament it's deadly for minor shareholder.
For example I had 20% of pie, then awake and now have 10% of pie. And my part's price decrease in twice.
Common practice: new outstanding offering by special price to old shareholders.
Edit: Asset issuers cannot change their contracts on btct.co w/o site admin approval, which is only granted upon a successful shareholder vote.
Ok, I can't remeber and will check COGNITIVE in future.
There's nothing stopping anyone from acquiring 51% of an asset that's offered for sale on the open market, but a shareholder vote to issue new shares or make any other contractual change can only be initiated by the asset issuer. If you don't feel you can trust any particular asset issuer then the rest is moot, simply don't invest in that person's securities.
Cheers.
It's lawlessness. "If you don't feel you trust" - I have don't feel trust this schema.
Easy way to cheat with minor shareholders. We (major) want to make new 1000 outstanding shares (total 10 000). Enviroment is permanent. Now price is 1 BTC, market cap = 10 000 BTC. After outstanding market cap will not change 10 000 BTC and new price will 0.9090 BTC per shares.
We doing easy thing: sell for cash untill price not fall by 10% or lower. Then announce and approve new outstanding and sell one lot it in market. Minor look at market and see new real price 0.9090 BTC. We (major) look the same thing, but we prepare cash for buying new discount shares and we usualy buy it all.
Now we have cheap profit in cash and our part will increased. Old minor shareholder just lost 10%.
Full lawlessness accorded by BTC-TC vs minor shareholders.