An open limited company turns to be a private limited company.
- Open ltd: raise fund in the market, as long as you are rich enough, you can buy in any shares of a public limited copany, the shares are opened to public.
- Private company: the maximum shareholder is 50 people, the transaction of shares can only be done among the 50 shareholders and thier friends, but NOT the PUBLIC
私有化好處:
In econmoic recession, the share price drops badly. Some RICH companies will buy in other companies' low price shares, If the rich companies become the largest shareholder, it will take up the control of the company. And usually the rich companies are the enemies of those firms who are turning to be privatized. It is particularly important to those who regard the business as family business!