Minority Shareholder Rights

Full Video Transcript

Your position as a shareholder is likely important to you even if you own a minority share. However, the majority shareholders may feel otherwise. They may not welcome your participation in the business, and they may prefer to do things their own way. Despite the feelings of the majority shareholders, you as a minority shareholder have certain rights. For example, you have the right to attend shareholder meetings and to vote in person or by proxy. You have the right to inspect corporate records and to request the business' financial records. If you were director then and you also have the right to attend a board of directors meeting. You must be provided with proper notice of all meetings to which you are entitled to attend. If the conflict develops and you no longer want to be a shareholder in the company, then you have the right to offer to sell your shares of the sock to the majority shareholders or to others as permitted by your corporate documents. It's true that being a minority shareholder does not give you as much control as being a majority shareholder, but you are not powerless. You do have certain legal rights.

Search LawInfo's Shareholders Resources