What are the rights of minority shareholders?

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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 the corporate officers.

3) the corporate officers then appoint, dedide if to retain or not, and set the salries of the rest of the employees. Usually through a heirarchal structure that is topped by the officers then goes down through management e.g. there is rarely voting on these issues but they are done through a managerial structure.

So, as a minority shareholder, you get to vote your shares like every other share holder: nothing more and nothing less.

There are endless complexities such as non-voting shares and such, but this is the general and basic principle of how corporate power works....Show more

The rights of shareholders are equal amonsgt the same class of shares ( voting vs. non-voting). All shares have an equal vote.

As a minority shareholder you just have fewer shares than the majority. And if the majority vote as a single block then their vote carries. The results of the votes are determined with a simple majority. therefor the way the mmajority goes, so goes the decision.

IF the majority is not a single block then you do have the possibility of splitting the vote and persuade some of the sharehold4ers to vote with you. Thus becoming the majority.

You may want to re-read the by-laws of the c orporation to determine if there is any...Show more

That's a rather broad question! The rights of all shareholders are subject to the terms and conditions as set out in the corporation's by-laws, in so far as they do not interfere with the rulings of the Securities and Exchange Commission.

The rights of minority shareholders are generally no different than those of whom are in a majority position... ie. vote in the election of corporate officers, receive declared dividends, etc.

So the rights are identical between majority and minority shareholders.

Being the owner of the majority of the outstanding shares of the corporation is an indication of possible control. In this situation, by default, you being the majority shareholder, will be the only person whose votes matter as the sum of the others will be less than your's. By virtue of this fact, you are now able to elect the board of directors without the co-operation of others, and esentially do what you please with the organization....Show more

Define minority shareholders. Do you mean shareholders who happen to be a minority or shareholders that hold very few shares? Makes a big difference....Show more

Squeaky wheel gets the oil? Also nature provides some answers. Ever notice pilchards? They swim in numbers. Some get devoured. Majority gets away. Also do not be a minority shareholder in unlisted companies!!!...Show more