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You're always welcome to consult a lawyer, but odds are there won't be much you can do. It's not uncommon to wipe out common shareholders where the preferred s
by mattzito 11y ago
You're always welcome to consult a lawyer, but odds are there won't be much you can do. It's not uncommon to wipe out common shareholders where the preferred stock and other debtholders take all the money out of the acquisition.
It's also difficult to weigh in without knowing the specifics, and even then the specifics from your perspective might be very different from the perspective or facts the board is running with.
I realize the director receiving 1 million may seem unfair (and it may even BE unfair), but it might also be whatever his/her agreement is with the company.
- Animats 11y agoTalk to a lawyer. If a director, not an investor, got money out and the shareholders didn't, that may be a breach of fiduciary duty. Directors have a responsibility to the shareholders.
- mattzito 11y agoSo, I think you probably meant to reply to the GP, and yes, directors have a fiduciary duty, but I suspect the director was also an investor or preferred shareholder. Straight-up malfeasance is pretty rare in cases with professional investors, as there are lawyers involved and people who know what's going on.