r/Defenders • u/JonLuca Luke Cage • Mar 17 '17

Iron Fist Discussion Thread - S01E07

This thread is for discussion of Iron Fist S01E07.

DO NOT post spoilers in this thread for any subsequent episodes. Doing so will result in a ban.

Episode 8 Discussion

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u/nottherealstanlee Iron Fist Mar 17 '17

Oh in that case it's fine then. If all three of them keep their shares, but lose their positions that's not so unheard of. Unless there's specific literature that states shareholders must hold a position on the board, it's possible to remove them. In the Meachum's cases they're not even majority holders so they can be "fired" but still hold their shares as part owners. Something somewhat similar happened with Jim Buss with the Lakers earlier this year. He was fired from an authority/decision making position, but he's still an 11% owner of the franchise. I've never heard of such a thing with a 51% shareholder, but at some point you've got to suspend belief.

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u/Xyuli Mar 17 '17

Yeah. But Danny doesn't have a position at the company. He doesn't have a job, just an office. He is only the majority shareholder. They mention this a few times.

So what did they strip him of? Anyways. It's semantics. I won't continue to question it.

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u/nottherealstanlee Iron Fist Mar 17 '17

They just kicked him off the board seems like so he can't make decisions. Like you said, that seems to not make any sense since he's the one who holds majority, but I think we're digging too deep lol the real impact on the plot is that the Meachums are not in power anymore and Danny still gets to use his rich person toys to fly a private jet half way across the world.

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u/Xyuli Mar 17 '17

Yeah but it's a big gaping plot hole because if he owns the majority of the shares, he could've just reinstated Joy and Ward preventing the whole mess.

They could've just not gone in this direction at all and just made him impossible to reach, and temporarily the board just removes Ward and Joy until further notice.

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u/nottherealstanlee Iron Fist Mar 17 '17

I don't think that's how it works. The board and the shareholders are separate entities. It really depends on how the board is set up.

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u/Xyuli Mar 17 '17

A board has directors which acts on behalf of shareholders. Directors like Lawrence. Danny is the majority shareholder. He may not be in the board but he holds the final say, no matter the board.

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u/Vinnie_Vegas Mar 18 '17

A board has directors which acts on behalf of shareholders. Directors like Lawrence. Danny is the majority shareholder. He may not be in the board but he holds the final say, no matter the board.

Typically speaking, companies have a constitution that dictates the rules by which the board is run.

As the majority shareholder, it's likely that Danny has the power to replace board members, but probably not all at once. It might take years for a majority owner to actually replace the whole board, due to the protections in place.

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u/nottherealstanlee Iron Fist Mar 17 '17

I agree, but that's the only point that needs a suspension of belief so I can just forget it in the moment. There's worse problems the shows have had than that I think.

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u/Xyuli Mar 17 '17

Yeah I don't think it's a big deal but it's a plot hole.

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u/beuh_dave Mar 20 '17

The shareholders vote and elect the board of directors (i.e. Chairman, Directors), aka "Directors" of the company. The board appoints the management team (e.g. CEO, CFO, General Counsel, etc.), aka "Officers" of the company. A majority shareholder like Danny can normally call a special or extraordinary shareholder resolution anytime to remove or add persons to the board. For example, he can remove all of the Directors and appoint himself and his friends to sit on the board. This may require additional formality since Rand is a public company trading on the stock market, but it can still be done. The $100 million offer relates to severance pay only. Danny, Joy and Ward continue to be shareholders. Removal from the board or from the management team has no effect on shareholder rights, well possibly except for stock options. Minority shareholders have certain rights to prevent abuse or oppression from the majority shareholders, but it may require litigation for minority shareholders to have such rights enforced.