Minority shareholders are those who hold less than 51% of the shares in a corporation. Both publicly traded and privately held companies have shareholders.
However, the rights of minority shareholders in closely held corporations may be more subject to oppression than those of shareholders in public companies.
Minority Shareholder Rights in Private Companies | Miller Law
By definition, minority shareholders own less than 50% of the company’s outstanding shares.
Minority shareholders have certain legal rights. Their minority shareholder rights are determined by the law of the state where the company was incorporated.
How to Protect Your Rights as a Minority Shareholder - KPPB LAW
However, there are protections in place for minority shareholders. ... Without knowing their rights, minority shareholders won’t know when their rights are ...
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Minority Shareholder oppression refers to conduct that substantially defeats the ... agreement, minority shareholders who lack both contractual rights and ...
Minority Shareholder Oppression in Closely
Shareholder oppression occurs when the majority shareholders in a corporation take action that unfairly prejudices the minority. It most commonly occurs in non-publicly traded companies, because the lack of a public market for shares leaves minority shareholders particularly vulnerable, since minority shareholders cannot escape mistreatment by selling their stock and exiting the corporation. The majority shareholders may harm the economic interests of the minority by refusing to declare dividends or attempting a squeezeout. The majority may physically lock the minority out of the corporate premises and even deny the minority the right to inspect corporate records and books, making it necessary for the minority to sue every time it wants to look at them. An important concept in law pertaining to shareholder oppression is the "reasonable expectations" of the minority shareholder. The "fair dealing" standard is also sometimes used by courts.
Shareholder oppression - Wikipedia