Asked by Briana Robinson on Jul 02, 2024
Verified
Shareholder agreements are useful devices to protect the interests of minority shareholders in small private corporations.
Minority Shareholders
Shareholders who own less than a controlling stake in a corporation, often with limited decision-making power.
- Understand the importance of shareholder agreements in safeguarding the rights of minority shareholders.
Verified Answer
AM
Amanda MurrianJul 02, 2024
Final Answer :
True
Explanation :
Shareholder agreements can include provisions that protect the interests of minority shareholders, such as requiring unanimous consent for certain decisions, setting terms for the sale of shares, and establishing dispute resolution mechanisms, thereby ensuring their rights and interests are safeguarded in small private corporations.
Learning Objectives
- Understand the importance of shareholder agreements in safeguarding the rights of minority shareholders.