3 ms·

Disclaimer: IANAL Since it is still a private company, you're not entitled to much, really. They are supposed to be holding some sort of board or corporate me

by brk 17y ago

Disclaimer: IANAL Since it is still a private company, you're not entitled to much, really. They are supposed to be holding some sort of board or corporate meetings, if for no other reason than to maintain themselves as a corporation for the legal benefits. You are supposed to get, or have access to, copies of the board meeting minutes. To cut to the chase, you're not going to get anything out of those shares. The company has no enforceable obligation to buy them from you, and unless they got their legal contracts out of a pop-up book, there will also be a clause in there that would prevent you from selling the shares to a competitor. Besides, what would you sell the shares FOR, money-wise? You don't even know what the company is worth, or (I'm assuming here) what yours shares represent in proportion to the total. And, why would a competitor want semi-worthless shares in another company anyway? For the most part, I would suggest you let it go and chalk it up to a learning lesson.

throwingaway 17y ago
For the most part, I would suggest you let it go and chalk it up to a learning lesson. And what is the lesson?
- brk 17y ago
  And what is the lesson? Get better documentation of total shares in the company next time Understand that shares granted by a private corporation will tend to have little, if any, real value until such time as the corporation goes public or gets sold. If neither seems probably, you basically just own "paper" Don't be swayed by shares of stock Don't take stock in lieu of pay (granted, you might not have had much other choice here). Make sure there is a clear, documented, signed understand of what exactly you can DO with those shares.
  - jacquesm 17y ago
    Every corporation has articles of incorporation, bylaws and there may even be a shareholder agreement. Any or all of the things you say may or may not be applicable depending on the existence and contents of those documents. OP may have more rights and possibilities to recourse than he thinks, being a shareholder is not 'all bad', there are plenty of laws that govern your rights as a shareholder too. At a minimum there has to be an annual report and a once per annum general shareholders meeting, if the percentage the three hold is large enough they may even be able to convene such a meeting. Seriously, get a lawyer if the stakes are high enough. If it's a couple of grand your talking about let it go and hope that some day they get bought out, then you will be in the drivers seat (they won't be able to sell without your consent).
    - russell 17y ago
      Minority stockholders are pretty much at the mercy of the majority holder, except for out and out fraud. They dont need the OP's consent. They may ask for his vote, but that is all it is, a per share vote.
- ja27 17y ago
  Next time get paper stock certificates so at least you have a souvenir.

by brk 17y ago

throwingaway 17y ago

For the most part, I would suggest you let it go and chalk it up to a learning lesson. And what is the lesson?

brk 17y ago
And what is the lesson? Get better documentation of total shares in the company next time Understand that shares granted by a private corporation will tend to have little, if any, real value until such time as the corporation goes public or gets sold. If neither seems probably, you basically just own "paper" Don't be swayed by shares of stock Don't take stock in lieu of pay (granted, you might not have had much other choice here). Make sure there is a clear, documented, signed understand of what exactly you can DO with those shares.
- jacquesm 17y ago
  Every corporation has articles of incorporation, bylaws and there may even be a shareholder agreement. Any or all of the things you say may or may not be applicable depending on the existence and contents of those documents. OP may have more rights and possibilities to recourse than he thinks, being a shareholder is not 'all bad', there are plenty of laws that govern your rights as a shareholder too. At a minimum there has to be an annual report and a once per annum general shareholders meeting, if the percentage the three hold is large enough they may even be able to convene such a meeting. Seriously, get a lawyer if the stakes are high enough. If it's a couple of grand your talking about let it go and hope that some day they get bought out, then you will be in the drivers seat (they won't be able to sell without your consent).
  - russell 17y ago
    Minority stockholders are pretty much at the mercy of the majority holder, except for out and out fraud. They dont need the OP's consent. They may ask for his vote, but that is all it is, a per share vote.
ja27 17y ago
Next time get paper stock certificates so at least you have a souvenir.