InvestorsHub Logo
Followers 2
Posts 399
Boards Moderated 0
Alias Born 09/02/2004

Re: None

Friday, 12/09/2005 12:02:57 AM

Friday, December 09, 2005 12:02:57 AM

Post# of 279080
Funding the fight

On the face of it, majority shareholders who control the Company (and its finances) have a massive advantage in any fight with the other shareholders in that they can pay their legal fees using Company funds. Even with a great legal case, a minority shareholder (who has often been booted out of employment by the Company) has only limited funds and is no match for the funds at the disposal of the Company.

However, in most genuine shareholder disputes, the courts will not allow Company money to fund what is essentially a personal battle. The Company does not exist to serve the majority shareholders and spend its funds on their personal legal fees so the courts will be willing to prevent any attempt to use Company funds in the battle, by granting an injunction if necessary

One should not increase, beyond what is necessary, the number of entities required to explain anything

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.