This guide provides an overview of shareholder rights and remedies.
What is a “Minority” Shareholder?
A “minority shareholder” is a person owning less than 50% of the stock in the corporation.
What Rights Do Minority Shareholders Have?
Minority shareholders in a corporation have the following rights:
• The right to vote
• Dissenter’s rights
• Rights to Maintain Relative Percentage of Ownership
• Derivative Actions
• Access to books and records
• Compelling dissolution
• Rights during the winding up of the business
How Are The Rights of Minority Shareholders Protected?
Minority shareholders’ rights are protected by the following:
• The duties of the controlling shareholders
• The duties of officers and directors
• Unconscionable buyout provisions
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