Appellate Practice Attorney serving New York, NY
The rights of the shareholders would be set forth in a shareholders' agreement, which might provide, for example, that the majority owners have the right to buy you out for a set price. Absent a contractual provision allowing it, the other owners cannot simply confiscate your ownership interest. Of course, a 5% ownership interest only entitles you (again absent a contrary contract) to a pro rata share of distributions. It doesn't entitle you to be employed by the company or to have a say in the company's management.
Answered on Jan 22nd, 2020 at 11:09 AM