So If You Were John Malone…Your very first order of business would be ….?
I’ll go first. I would order the new board to vote unanimously and immediately to do a reverse stock split, and they would comply of course..
Costs and Documentation
Reverse stock splits are costly and require detailed filings with the respective stock exchange. NASDAQ requires a minimum of 15 days advance notice before the split takes effect and charges a $7,500 fee. The company must indicate in its notice whether the split was voted on and approved by shareholders or a vote of the company board. The United States Securities and Exchange Commission, which oversees corporate stock activity, indicates that shareholder approval is not required for a reverse stock split, but companies can instead notify shareholders of the move on its 8-K, 10-Q and 10-K form filings. Additional items included in the exchange filing are the ratio of the split, changes in outstanding shares and par value of the stock and any amendments to company articles of incorporation.
A reverse stock split could confuse the market without proper notification. Investors would see one share price the day before the effective date and a sharply higher price the next. NASDAQ adds a “D” to the company’s stock symbol for 20 days, beginning with the effective date, according to the NASDAQ OMX Listing Center. This helps investors know that a trade at that share price follows the reverse split.
And while the NASDAQ has certain rules for such actions, the change of control puts the new Board of Directors under no obligation really to apply those rules….It was early. I missed this little part of the 10K: ...