Rights and Duties of Shareholders

Shareholders in publicly-traded corporations generally are not involved in decisions made by the corporation, other than their act of electing members of the board of directors. In a closely-held corporation, however, it is common that a shareholder or group of shareholders control the corporation. Most courts require that the controlling shareholders uphold a duty of fairness in dealing with the non-controlling shareholders. Minority shareholders in some instances may also demand an appraisal of the fair value of their shares or may demand that the corporation dissolve due to one of several occurrences.

Inside Rights and Duties of Shareholders