Is there a way the company can sell additional stock without the partners losing control of the business?

To obtain additional capital to fund the expansion, the company is considering another stock offering. But the original partners do not want to lose voting control of the business. Mention the kinds of capital stock the company could issue that would accomplish this.

Small Business, Small Business Financing
Sort By:
Most Helpful
July 2017

This is a very interesting question and a good one.  The original partners could issue limited voting stock, or non voting stock, in. a proportion which would keep them with over 50.01 percent of the total stock voting participation.  In Silicon Valley, they often issue dual class stock as a way to keep founder control of the company- look at Facebook or Google as examples.  I hope this helped answer your question.

February 2016
August 2017