Article: Minority Shareholders ? Fighting The Man
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Minority Shareholders ? Fighting The Man
Investing in a corporate entity is fairly standard practice in our society. Problems arise when you own a small percentage of shares, but disagree with the direction the majority shareholders are taking the entity. As a minority shareholder, do you have any way to fight ?the man?, to wit, the majority shareholders?
Minority Shareholders
A couple of your friends come up with a great business idea, but need start-up capital. You agree to provide $10,000 for 30 percent of the shares. A corporation is formed, but the friends take the business in a direction you don?t like. What can you do?
The first step for a minority shareholder is to look at the bylaws of the corporation. If careful planning was taken when forming an entity, there should be claus...
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