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minority shareholder-less than 5 shares- do i have a right to review the books?

Family owned business- I do not work for, but am a minority shareholder with less than 5 shares.

Never provided with yearly financial statements, or privey to company business. Do I have a right to yearly financial disclosure statements? Also, they never make distributions- are they not bound to ever do this?

2 Answers

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  • JKRB
    Lv 7
    9 years ago
    Favorite Answer

    According to one site I found:

    The minority shareholder has rights according to corporation law to inspect records of the corporation and to receive financial statements of the corporation. Records subject to inspection under California law include the bylaws of the corporation, and the accounting books, records, and minutes of the corporation. The minority shareholder should assert his or her rights to view these records.

    Unfortunately, you're out of luck with the distributions (dividends). The board of directors decides when or if any distributions are made. Good luck.

  • marilu
    Lv 4
    4 years ago

    The rights of shareholders are equivalent amonsgt a similar classification of shares ( balloting vs. non-balloting). All shares have an equivalent vote. As a minority shareholder you in basic terms have fewer shares than the majority. And if the majority vote as a unmarried block then their vote includes. the consequence of the votes are desperate with an straightforward majority. therefor the way the mmajority is going, so is going the alternative. IF the majority isn't a unmarried block then you definately do be able of splitting the vote and convince different the sharehold4ers to vote with you. as a result starting to be to be the majority. that's extremely useful to re-examine the through-regulations of the c orporation to verify if there is any

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