Business law (1) Can a small-holding (minor) shareholder have an influence on how a company is...

Business law

(1) Can a small-holding (minor) shareholder have an influence on how a company is managed? What are the main restrictions and are the number of shares held relevant?

Solutions

Expert Solution

1) No, A small holding shareholder cannot have influence on how a company is managed. He does not exert any control over the company. As they doesn't own much of the holdings in the company they cannot take decisions regarding the company which influences it. Therefore a small holding shareholder have no influence on the company and it's activities. Only the majority shareholders can influence the company .

Main restrictions are as follows:

There's no shareholders' perspective of the board in making the decisions and minority shareholders' interested are not restricted.
The Corporate governance restricts the minority shareholders.
The voting rights are even restricted for minority shareholders.
No much importance to the concerns of the shareholders.
Restriction of communication and interaction between minority shareholders, Board members and management.

The number of shares held with the minority shareholders are relevant even though they hold small number of shares in the company.

ekkarill92 answered 2 weeks ago

Next > < Previous

Related Solutions

I have a small business based on wholsale. How can I know how much my business...

I have a small business based on wholsale. How can I know how much my business is worth or if it has any stock value??? Is there a website/number I can go to where I see if I even have any stocks??? Because I don’t know how the stock market works (I’m new at this)

How can a small business check their credit?

How can involution entrepreneurship influence a company's business strategy ?

Business Law - Third Parties Burning Lake Tire Company is a small business owned primarily by...

Business Law - Third Parties Burning Lake Tire Company is a small business owned primarily by the Jones family of Cleveland, Ohio. Bob Jones, President of Burning Lake Tire, signed an agreement with Scotti Commercial to lease a machine designed to bend exhaust pipes so that mufflers could be fitted into different makes of cars. The lease was a pre-printed contract drafted by Scotti and contained lots of standard language (aka, “small print”). Specifically, the lease contained the following language:...

Which of the following is likely to have the largest influence on how easily a business...

Which of the following is likely to have the largest influence on how easily a business may obtain funding? A. Number of firms in the industry B. Age of business C. None of these D. Age of the entrepreneur QUESTION 6 Which of the following is part of the IPO (initial public offering) process? A. Meet all state requirements B. None of these C. File with the SEC (Securities and Exchange Commision) D. Choosing an underwriter E. All of these...

Master Budget Problem: You are the sole shareholder and operator of a small incorporated business that...

Master Budget Problem: You are the sole shareholder and operator of a small incorporated business that purchases compact global positioning devices and sells them to retailers. You started your business two years ago. The following data have been assembled to assist in the preparation of the master budget for the first quarter (January, february and March) of 2020. Your first task is to make up a name for your company and replace Company Name with it. As of december 31,...

You are the sole shareholder and operator of a small incorporated business that purchases compact global...

You are the sole shareholder and operator of a small incorporated business that purchases compact global positioning devices and sells them to retailers. You started your business two years ago. The following data have been assembled to assist in the preparation of the master budget for the first quarter (January, february and March) of 2020. Your first task is to make up a name for your company and replace Company Name with it. As of december 31, 2019 your company...

Master Budget Problem: You are the sole shareholder and operator of a small incorporated business that...

Master Budget Problem: You are the sole shareholder and operator of a small incorporated business that purchases compact global positioning devicses and sells them to retailers. You started your business two years ago. The following data have been assembled to assist in the preparation of the master budget for the first quarter (January, February and March) of 2020. Your first task is to make up a name for your company, and replace Company Name with it. As of December 31,...

business law. 1. How is tort law different from the other types of US common law?...

business law. 1. How is tort law different from the other types of US common law? A. It is a response to the problem of injury. B. The other answers describe contract law, property law, and criminal law. C. It arises from mutual agreements. D. It regulates ownership. E. It penalizes wrongful actions on behalf of the public. 2. Which of the following is NOT a goal of tort law? A. Making people honor their agreements B. The answer is...

Why does business law play a vital role to small business owners?

Subjects