Not all public companies listed in the stock exchange. Shares of only those public limited companies that satisfy certain conditions are listed in stock exchanges.

Say, ABC Bank Ltd is listed in stock exchange. Tony and his 6 friends will be managing the day to day matters of the company. Tony will be the CEO, and friends are directors.

Shareholders are the 'owners', Tony and his 6 friends are ‘controllers’ of the business.

The famous British philosophy of ‘divide and rule’ brought into play.

Without Tony's knowledge no one can buy shares more than 5% of the total shares, 50,000 shares in this example.

The company needs to be advised about this kind of holding by anyone who holds. A separate register will be maintained by the company for such significant shareholders.

This way he can control anyone having more votes in electing new directors after the initial 5 years.

Say he fixed his salary as $2 million per year. Tony's salary may be paid partially in cash and partially as shares in ABC Bank Ltd.

The salary paid in shares does not attract income tax, until he sells those shares and makes a gain.

Income tax law supports his income in shares and allow him not to pay tax on it.

This way Tony accumulates more and more shares as part of his salary (for nothing). He effectively becomes a major shareholder, over a period of the first five years.

When he has to retire at the end of 5 years he can be re-elected with simple majority vote in the meeting.

Simple majority means, the number of votes in his favour is more than number of votes against him.

As he would have acquired more shares as part of his salary in 5 years, he can cast so many votes in his favour for re-election as many shares as he has.

This way he has ensured he will be the CEO and directors until another 5 years and so on.