Definition for : Minority shareholder

Shareholders holding less than the Blocking minority (if such a concept exists in the country) of a company that has another large shareholder have a limited number of options open to them. They cannot change the company objects or the way it is managed. At best, they can force Compliance with disclosure rules, call for an audit or an extraordinary general meeting of Shareholders. Minority Shareholders can protect their interests by concluding a Shareholders' agreement with other Shareholders. Under these contracts, the sale of the shares of one shareholder will be coordinated with the others (pre-emptive rights, call/put agreements, etc).

(See Chapter 40 Setting up a company or financing start-ups of the Vernimmen)

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