You owe minority investors or other shareholders special fiduciary duties when you sell your company. As I discussed in a prior post, directors, officers and others who control companies (let’s call them “control persons”), owe certain baseline fiduciary duties to shareholders. Under Delaware law, the benchmark for corporate governance in the United States, these duties apply […]
Tag Archives: Minority Investors
Fiduciary Duties: Minority Shareholder Rights
Officers, directors, managers, controlling stockholders and other control persons of corporations and other entities frequently have responsibilities to minority owners set forth in their companies’ organizational documents (charters, bylaws, operating agreements, etc.). For example, a control person may be required to give investors access to a company’s books and records. In addition, state law imposes […]