Ignoring minority owner concerns can carry a huge price tag

Article Abstract:

The inquiries of a minority stockholder of a magazine publishing company about the firm's expenditure and spending practices were repeatedly ignored by the president. Hence, she decided to get a law order for her to see the company reports. By doing this, she discovered anomalies in the company operations. She filed a lawsuit against her firm, claiming that the company and its president were mishandling corporate funds by giving principal owners and executives exorbitant salaries and benefits. The judge overseeing the case agreed with her and ruled that the firm buy out her 2% share for $142,000.

PRINTING AND PUBLISHING, Publishing, Publishing Industries, Stockholder Relations, Stockholder Suits, Publishing industry, Cases, Ethical aspects, Corporations, Shareholder lawsuits, Minority stockholders, Corporate corruption

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Your minority stockholders

Article Abstract:

Stock ownership gives stockholders certain rights and privileges. An entity that owns majority of the shares does not necessarily have the power to take any action it wishes. The approval of stockholders still has to be solicited. In gaining stockholder approval, the majority owner has to know who has the right to vote, how many votes are required to support the issue being voted on, whether a stockholder has to be present to vote and how many votes per share a stockholder needs in the election of board members.

Management, Evaluation, Stockholders

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