TEXAS — Is it possible to own a company without controlling it, or even being “affiliated” with it? That’s the fine point of corporate governance state officials and Warren Buffett’s Berkshire Hathaway Inc. are debating and weighing, reports an article in My Statesman.
The issue stems from Berkshire Hathaway’s efforts to maneuver around a state law that has jeopardized the conglomerate’s ongoing operation of nearly three dozen Texas car dealerships because it also owns a company that manufactures recreational vehicles, Indiana-based Forest River Inc.
State law prohibits a motor vehicle manufacturer from also owning dealerships, even if the vehicles aren’t of the same type. owever, the law defines a “manufacturer” as someone “affiliated with” a manufacturer or “controlled by” a manufacturer.
Find the full article at My Statesman.