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The legal community has criticized the present rules with regard to freeze-out mergers as being biased against the interests of the minority shareholders. For example, if a gain in stock value is anticipated by the majority, they can deprive the frozen-out minority of its share of those gains. [4]
In New York in particular, minority members of limited liability companies run the risk of being involuntarily cashed out of the company in a “freeze-out” merger or “midnight merger ...
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. [1]
Minority shareholders claimed to recover money paid away contrary to the financial assistance prohibition (now found at section 678 of the Companies Act 2006) and being ultra vires. They had 14% of the company's shares, the defendants held 63%, and another shareholder, who did not want litigation, held 21%.
In a brewing battle, the founders of Tree House Brewing Co. are firing back and denying claims made in a lawsuit by a minority shareholder
Kaisa Group Holdings has lost control of a New York-listed property affiliate after a shareholders' revolt, in a boardroom defeat that adds to the developer's woes amid its asset sales plan to ...
Drag-along right (DAR) is a concept in corporate law, often encountered in the context of venture capital and private equity.. Under the concept, if the majority shareholder(s) of an entity sells their stake, the prospective owner(s) have the right to force the remaining minority shareholders to join the deal.
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