We issued share options to
everyone who worked for us when the company was 1 year old. We did the same in
years two and three. We had over 150 individual shareholders who lived all over
the world. We had to make sure we kept track of them because we needed them to
vote on company matters and approve the annual report. This was time consuming and
we had already lost track of 12 people who held 7% of the shares.
We were approached by a
large institutional investor who wanted to buy a majority share of the company.
To approve this investment, we needed 95% acceptance from our shareholders. The
investor wants to buy out all small shareholders (under 1%).
It took us three months
and we had to hire investigators to locate everyone. There was nearly 2% we
never found so it was a close vote to approve the investment.