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The board can decide to put the decision to the general assembly of stock holders and in that, the preferred shares will get more votes and stop the decision.
by marcus 19y ago
The board can decide to put the decision to the general assembly of stock holders and in that, the preferred shares will get more votes and stop the decision.
Shareholders will have no legal recurse to take, as they we're fully informed of this power balance before they bought the shares.
- dejb 19y agoImagine if the decision clearly disadvantaged one class of shareholders in favour of another. For example just taking all the assets of the company and distributing them to Class B shareholders, leaving the class A shares worthless. I do believe there would be legal recourse in this type of situation.