| johnV | Wednesday, June 30, 2021 - 08:49 am 
It appears that a corp can have a hard limit of 1T$ in cash.
This is a public corp with a market value of 700B$, go figure. |
| Andy | Wednesday, June 30, 2021 - 10:01 am
Ha ha,
rich people problems.
Looks like this is indeed the limit.
There is hardly any reason to think of, for a corporation to have so much cash.
you can move large part of it to the owner, then to the account where you keep your reserves. |
| Jiggle Billy | Wednesday, June 30, 2021 - 07:27 pm
How do you remove it from a public one? I've never figured out how to do distributions with them. Only Private, single owner corps. |
| Lord Mndz | Thursday, July 1, 2021 - 07:41 am
this is a curse of all public corporations, if it has a debt game does not allow to transfer money to save it, when you have surplus you cannot pay as dividends or something to get that money out. |
| johnV | Thursday, July 1, 2021 - 09:34 am
Fortunately I control all the shares and the corp has over 1B shares.
I'm doing a share buyback on the corp page and then selling some country and ent holdings.
By repurchasing 400M shares I've reduced the cash by 200B$ and will take the rest in a day or two. |
| Andy | Thursday, July 1, 2021 - 12:30 pm
Corporations pay tax and they pay "profit sharing" with the owner.
You can set the percentages.
Public corporations cannot make cash transfers. They may have many share holders. giving the corporation money or taking money out will disadvantage nearly all the share holders.
public corporations can pay dividends.
this is the percentage under profit transfer.
Dividends are paid to all the share holders. Payments depend on the number of shares they own.
In all other corporations that have a single share holder (country or enterprise), the profit sharing/ dividend is paid to the owner of the corporation, the one share holder, the country or enterprise.
increase the profit transfer percentage and more will be paid out as dividend.
Public corporations in need of cash can sell shares to raise money.
This is how it works in the real world too. |
| Jiggle Billy | Thursday, July 1, 2021 - 02:40 pm
I'm fine with not being able to transfer money in, but in the real world if a corporation has excess cash after paying out regular dividends and expenses they can also issue a special dividend to spend it.
Also JohnV, good idea on share repurchase, I didn't think of that solution. |
| Andy | Saturday, July 3, 2021 - 09:48 am
Having more than one dividend option makes it more complicated.
You could just increase the dividend level much higher and more money will flow to the shareholders. |
| johnV | Sunday, July 4, 2021 - 09:44 am
JB, public corps automatically issue a 40B$ dividend when their cash reaches around 120B$. |
