4 Rights of Minority Shareholders

If you are feeling the squeeze or otherwise feeling kept out of important decisions due to the actions of majority shareholders in the company you are invested in, know that as a minority shareholder, you do have rights. These include the rights to:

1. Attend shareholder meetings
2. Vote in person, or by proxy
3. Inspect corporate records
4. Request the business’s financial records

This list is certainly not exhaustive, but illustrates the bare minimum that you are entitled to as a minority shareholder. Speak with an attorney in your area if you feel that your rights are not being respected.

If you are also a director, you have the right to attend a board of director’s meeting. You must also be provided with proper notice of all meetings to which you are entitled to attend. If you come into a situation in which you wish to get rid of your shares in the company, then you have the right to offer your shares for sale to the majority shareholders or to others as permitted by corporate documents.

While it is true that minority shareholders do not have the same rights as majority shareholders, this does not mean that you are powerless.