Corporate shareholder rights are essential elements of corporate governance, ensuring that those who invest in companies have a voice in their operation and oversight. These rights not only protect investors but also play a critical role in the health and governance of the corporation itself. Understanding these rights can help shareholders ensure they are receiving the benefits and protections due to them under the law. Basic Rights of Shareholders At its core, shareholder rights encompass several key privileges: Voting Power: Shareholders typically have the right to vote on major corporate decisions, including the election of board members, mergers, and[...]

If you own a share of a privately held business, your rights are largely determined by your operating and purchase agreements.  Where an operating agreement does not address an owner’s rights, North Carolina Law often steps in to provide “default” provisions or rights. However, your rights as a shareholder vary based on the portion of the company that you own. This article will consider some of those statutory rights for “qualified minority” shareholders, meaning those who own between 5% and 50% of a company’s shares or have owned less than 5% for at least six months. If you are[...]