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> Minority shareholder oppression is a thing. Yeah, but minority investors know that going in. If I buy 10 shares of Google, it's unrealistic for me to think t
by lordfrito 4y ago
> Minority shareholder oppression is a thing.
Yeah, but minority investors know that going in. If I buy 10 shares of Google, it's unrealistic for me to think that I hold any power as a shareholder. I'm simply along for the ride.
A large investor buying say, a 25% stake in a company, while being aware of an existing 51% voting block, knows that their 25% position is a minority and does not come with significant influence.
Any investor who buys a large minority stake and later complains about not having control didn't do their homework ahead of time.
If a minority shareholder doesn't like the way the company is run they have three choices:
- sell their shares and buy-in to a more attractive company
- buy up a controlling interest and get their voice heard
- shut their mouth and deal with it
Why should the minority opinion be allowed to overrule the majority? The majority has more skin in the game, they have more money at stake in the company.
- BernardKingIII 4y agoControlling shareholders have a fiduciary duty to deal with minority owners in a fair, just, and equitable manner and they may not use their power to control corporate activities to benefit themselves alone or in a manner detrimental to the minority.
- NotYourLawyer 4y agoThe minority shouldn’t overrule the majority. But the majority has a duty to deal fairly with the minority and not screw them over.