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Subject: Question about company failure after Deregulation rss

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Pedro León
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I don't understand when is possible the company failure after deregulation.

Company failure is produced during a bailout when no player cubes remain in the Court of Directors but the bailout after deregulation not cause the elimination of any shares. So, how can a company fail after deregulation?

Quote:
Company Failure after Deregulation. If the Company has lost its monopoly and there is at least one firm at the end of the game turn, the game will continue for one more game turn, but will skip the Company Phase.


I understand that this paragraph explain the consequences os a company failure after deregulation not the conditions for the situation occurs.

Thanks in advance.
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I believe it is answered here: https://boardgamegeek.com/thread/1896058/company-collapse-po...
Specifically:
1) A bailout occurs when there are no shares in the court of directors (unlikely, with no shares in the court of directors, the chairman can set a dividend of infinity pounds)

So I guess it only happens if the company fails to turn a profit.
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Pedro León
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TGLS wrote:
So I guess it only happens if the company fails to turn a profit.


Thanks for your answer TGLS,

If the company fails to turn a profit on the 3 pounds value of the share or any value?


PD: I had read these post but your interpretation has helped me to understand it better.

 
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mr K
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But after deregulation no shares (cubes) are removed from the court of directors when a bailout happens, when does the company failure trigger? Never? Because the usual trigger, not having cubes left in the court of directors, is now next to impossible.
 
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Martí Cabré

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TGLS wrote:
I believe it is answered here: https://boardgamegeek.com/thread/1896058/company-collapse-po...
Specifically:
1) A bailout occurs when there are no shares in the court of directors (unlikely, with no shares in the court of directors, the chairman can set a dividend of infinity pounds)

So I guess it only happens if the company fails to turn a profit.


Maybe there's another way: if after some attrition there's only one share left that then turns into chairman, and no family puts more money into the Company. Then there would be no shares in the court of directors.
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No, the company will only fail if no dividend is paid at a 3 pound stock price. In theory, with zero shares, you can declare any dividend you please, because it won't cost anything. The only reasonable interpretation is that the company fails anyway if the company doesn't turn a profit (i.e. Too much military, debt).

The other way to do it, I suppose, is pretend that there is 1 share even if there aren't any.
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Pedro León
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TGLS wrote:
No, the company will only fail if no dividend is paid at a 3 pound stock price. In theory, with zero shares, you can declare any dividend you please, because it won't cost anything. The only reasonable interpretation is that the company fails anyway if the company doesn't turn a profit (i.e. Too much military, debt).

The other way to do it, I suppose, is pretend that there is 1 share even if there aren't any.


Make sense, thanks a lot TGLS.
 
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Rich James
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TGLS wrote:
No, the company will only fail if no dividend is paid at a 3 pound stock price. In theory, with zero shares, you can declare any dividend you please, because it won't cost anything. The only reasonable interpretation is that the company fails anyway if the company doesn't turn a profit (i.e. Too much military, debt).

The other way to do it, I suppose, is pretend that there is 1 share even if there aren't any.

The only definition for company failure that I find in the rules is under J3. Bailout and Company Failure. I see nothing in there that suggests that the company fails if it cannot pay its dividend. When the company cannot pay its dividend, it is a Bailout that occurs. This normally would eliminate Court of Director cubes and could lead to a failure. But under Deregulation, Court of Director cubes are not eliminated. So the effect of Bailout in that situation is to remove Executives and reset the share price to 3.

As I understand Company Expenses in the Trade phase, the Chairman has to pay for military upkeep, Debt, and Country Trade, taking out however many loans are needed to meet those expenses and allocating any leftover money to offices. Then he must pay Dividends if the share price is at 3. If that cannot be done, a Bailout occurs. So no Failure, just a Bailout which sacks the executives, may trim the Board of Directors and resets the share price to 3.
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