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You still own a share of the company. If they pay dividends, you get one.
by henryfjordan 7y ago
You still own a share of the company. If they pay dividends, you get one.
- Viliam1234 7y agoBut if you can't vote about whether they pay the dividends... what is preventing the owner of the voting share to simply never pay dividends, and transfer the profit to their own pocket using some other method, for example giving themselves a really high salary, or starting a new company and transferring the profits there?
- henryfjordan 7y agoWhen you are making decisions on behalf of a corporation, you legally have to make the best decision for the shareholders. There's a lot of wiggle-room in that, but the courts will see through the most egregious stuff. So if you own non-voting shares and the voting shares decide not to give dividends and instead buy a useless corporate yacht for themselves to use, you can sue.