dilution

[pars]

Dear all:
What is the exact meaning of "dilution" in the following passage? It is from the book Persian Petroleum by Leonardo Davoudi, p. 49.

A month later, in April, Vincent received the joint opinion of a king’s counsel and a junior, who confirmed his ownership of 7 per cent of the concession and all its future corporate incarnations and proceeds, regardless of dilution.

Many thanks in advance.

 

[Flamenco1]

Dear all:
What is the exact meaning of "dilution" in the following passage? It is from the book Persian Petroleum by Leonardo Davoudi, p. 49.

A month later, in April, Vincent received the joint opinion of a king’s counsel and a junior, who confirmed his ownership of 7 per cent of the concession and all its future corporate incarnations and proceeds, regardless of dilution.

Many thanks in advance.

Avoiding dilution means he will always have 7% of the overall value.

In the case of a company, his 7% shareholding would be maintained no matter how many new shares might be created.

It is a very common method used to protect minority or early investors.

If the shareholding is diluted the percentage of the shareholding will decrease.

 

[Tdol]

Another way to have such control is to control voting rights for certain shares:

An even more overwhelming majority, 83%, voted to implement a “one share, one vote” system at Facebook, replacing the dual-class structure that's now in place. Under the current structure, Class A voters receive only one vote per share, while Class B voters—which consist of the company's management and directors—receive 10 votes per share. This means that Zuckerberg, the company's majority shareholder who holds 75% of Facebook's Class B stock, controls 58% of Facebook's vote.

Facebook Investors Begin to Revolt Against Mark Zuckerberg

Too bad the C.E.O. controls nearly 60% of Facebook's voting power.

www.vanityfair.com