Topic: Minority Shareholder
Answers to Common Questions
What are the rights of minority shareholders?
It generally works like this: 1) shareholders vote on a one-share-one-vote basis for the board of directors. 2) the board of directors then, on a one-vote-per-director basis, to appoint, decide if to retain or not, and set the salaries of t... Read More »
Source: http://answers.yahoo.com/question/index?qid=20060915143453AA3mygE
What happens to minority shareholders if the company is filing a ...
All shareholders, all stock in fact, is almost always reduced to zero and worthless. Stock represents equity in a company. A Co in BK has no equity, in fact it has NEGATIVE equity...if the ownership wasn't stock in a corporation, but say pa... Read More »
Source: http://wiki.answers.com/Q/What_happens_to_minority_shareholders_i...
What are the rights of Oppressed minority shareholders in case of...
You may not have any. If the valuation was being made by the board you could file a derivative suit to force an accounting and possibly get injunctive relief. In fact, this may still work if the majority shareholders are also board members.... Read More »
Source: http://www.answerbag.com/q_view/360633
Answers to Other Common Questions
Bill, I'll answer somewhat off the cuff, so other attorneys will correct me if I err. Understand what is a minority or a majority in this regard. People tend to think that this is a simple numerical calculation when in reality, it isn't. On... Read More »
Source: http://www.quora.com/In-corporate-law-California-what-constitutes...
This is usually a decision made at the shareholder level - that is, officers or directors cannot make that decision on their own. Even with a supermajority requirement, commonly included in bylaws, a 2% shareholder cannot hope to defeat a s... Read More »
Source: http://www.quora.com/What-can-a-minority-shareholder-in-an-S-Corp...
You buy him out. This is the only way baring a signed shareholder agreement that allows another way. Shareholders are not required to work in a business. Shareholders monetary risk is limited to the loss of their stock. You can't require a ... Read More »
Source: http://answers.yahoo.com/question/index?qid=20071011011903AAprmBq
Notalot. If I recall correctly - with more than 25% (in the UK) you have the right to call for special or emergency meetings of the Board of Directors - call them into account - but that won't help if those you regard as faulty can collecti... Read More »
Source: http://answers.yahoo.com/question/index?qid=20080603061435AAJG8Od
You have asked a very interesting question, but there is not one answer. Instead, there are a lot of ways to go, and there would have to be a process that needs to be custom-crafted to your situation. The facts and judgment of risks and rew... Read More »
Source: http://www.quora.com/How-might-a-C-Corp-go-about-diluting-or-comp...
That's a bit of a risk. At the same time, you're getting some critical mass with [the oligarchs] looking at each other to make sure the others are not abusing shareholders. If [oil major] Surgutneftegaz does something bad, then [oil major] ... Read More »
Source: http://www.businessweek.com/bwdaily/dnflash/may2002/nf2002059_267...
The responsible party rules are designed to hold the people who are making the decision to prefer creditors over the IRS responsible for certain payroll taxes. If you are not involved with running the company you will not be found to be lia... Read More »
Source: http://www.avvo.com/legal-answers/what-is-personal-liability-of-m...
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