Asked by Anika Singh on Jul 09, 2024
Verified
Alvin and Billy own 70 percent of Beta Corporation.Claude owns 30 percent of Beta Corporation.Alvin and Billy consistently vote and act in ways that only benefit them and harm Claude.Claude may claim oppression as a minority shareholder.
Minority Shareholder
An investor who owns less than 50% of a company's shares, holding less control over decisions.
Oppression
The officers, directors, or controlling shareholder’s isolation of one group of shareholders for disadvantageous treatment to the benefit of another group of shareholders.
- Identify the concerns and protections available to minority shareholders, including claims of oppression and freeze-out tactics.
Verified Answer
HA
Hannah AdighijeJul 15, 2024
Final Answer :
True
Explanation :
When a group of shareholders has been isolated for beneficial treatment to the detriment of another isolated group of shareholders,the disadvantaged group may complain of oppression.
Learning Objectives
- Identify the concerns and protections available to minority shareholders, including claims of oppression and freeze-out tactics.
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