If you are a shareholder, read the material and understand what it is that they are seeking to do with this mtg.
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Corp or Tech
I think the stock price doesn’t change dramatically. The company will own the new shares. Which means that stockholders own the same fraction of the company; they in effect own a fraction of the diluted shares. Own but don’t control. So we can’t vote those shares. We can’t decide when they are sold. We can’t decide when they are granted to some executive.
Earnings per share will drop which may affect the stock price. If the company offers a dividend, that will, I think, be reduced. Which, in turn, will reduce the stock price.
what'll happen to stock price? stock price will be down due to this dilution?
transparency and accountability aren't virtues
more control with less liability, and dilution of existing shares, how nice
Perhaps someone with more experience can comment on dilutions. But this is what I see.
The company will go from 450m shares to 750m shares. Which means the company will now own 300m out of 750m shares plus whatever stake they have now. That's 40% more control. Sounds to me like they won't need to talk to regular shareholders anymore. They (board of directors) will likely control a majority of votes.
They will have a ton of shares to sell or to give away. "You did a great job in this split, have a ton of shares!", for one example. This could fund a lot of golden parachutes.
The rest of the proposals all sound like giving more power to the board and to other officers. Hey, you were worried about facing liability for that action? Don't worry any more. Hey, we had to ask the shareholders before we could do this? Not any more.
It could make it easier to handle the split and Kioxia merger more easily. Which could be good and bad.
Decide if you want to hand over more control. Also, it would be good to understand what this does to options and RSU's. Are they devalued in a dilution?
My guess is that a lot of big investors will be voting, so my few shares don't count for much. But a lot of small investors could make a difference.
So, what happens to RSU’s in a dilution? Do 100 RSU’s become 200? Or do they just become worth half (roughly in this case) as much?
Do you want shareholders to have less say in what happens?
Do you want the executives to face less risk of liability? Does this actually allow them to recruit better people (which begs the question of does this say that they admit they have second rate execs now?)?
Do you want them to be able to just keep this proxy vote open until they get the answer they want?
Proposal 5
“Adjournment of the Special Meeting from time to time to solicit additional proxies in favor of Proposals 1-4 or if otherwise determined by the Chair of the Special Meeting to be necessary or appropriate.”
Fourth
“
Approval of an amendment to Western Digital Technologies, Inc.'s Amended and Restated Certificate of Incorporation to provide for the elimination of certain officers' personal liability for monetary damages stemming from breaches of the duty of care as permitted by Section 102(b)(7) of the General Corporation Law of the State of Delaware. ”
Third proposal:
Approval of an amendment of the Amended and Restated Certificate of Incorporation of Western Digital Technologies, Inc., to remove the provision that requires the approval of Western Digital Corporation's stockholders, in addition to the vote of Western Digital Corporation (as sole stockholder), in order for Western Digital Technologies, Inc. to take certain actions.
Proposal 2
“ Approval of an amendment to Western Digital Corporation's Amended and Restated Certificate of Incorporation to provide for the elimination of certain officers' personal liability for monetary damages stemming from breaches of the duty of care as permitted by Section 102(b)(7)of the General Corporation Law of the State of Delaware.”
Proposal 1
“ Approval of an amendment to Western Digital Corporation's Amended and Restated Certificate of Incorporation to increase the number of authorized shares of Western Digital Corporation Common Stock from 450,000,000 shares to 750,000,000 shares.”
Shares dilution is coming ...
WD gonna sell lots of stocks so that stock price will be …
Please explain it to us stupid simple minded folk
If you are so simple as to not understand what was filed and for what purpose please don’t vote. Probably a good idea to not vote on anything if this is you.
can’t you just tell us?