Schwartz Law Firm Legal Blog

A minority shareholder is someone who owns less than half of a business. As a result, the shareholder, typically, has a limited amount of rights and power when making decisions on behalf of a company, unlike a majority shareholder who owns more than half a business. However, most minority shareholders still have some say over a company’s affairs, such as…

When you participate in the management of an organization, whether it is a successful corporation or a non-profit organization, the actions of board members and executives can reflect on everyone involved with the company. While there are often a few people who vote against even popular decisions, sometimes individual executives or board members do something that most other parties involved…

Running a successful business will present a never-ending string of challenges. Although many of these issues will be external threats, internal issues may be present that can lead to risk for the entire organization. For example, you never know when someone involved in the operations of the company might engage in some significant misconduct, like embezzlement. Recognizing the warning signs…

The details vary, but publicly traded companies have different ownership categories. For example, three classes of securities are listed in descending order of hierarchy: bondholders, preferred stockholders and common stockholders. Despite sitting at the bottom, common stockholders still enjoy many rights and protections. In return, the sale of common shares (also known as ordinary shares) enables the company to raise…