Minority Shareholder Rights
Protect Your Investment and Enforce Your Rights
If you have minority ownership in a business, this means you own less than 51% of interest in your company. Minority ownership identifies shareholders who don't have majority or controlling ownership. There are different rights minority owners have vs majority owners, and these laws can often differ between states.
If you are a minority shareholder or owner of membership units in a corporation or a minority member in a limited liability company, you have significant statutory rights that are afforded protection under Minnesota law. In fact, our state has some of the strongest laws in the country when it comes to protecting the rights of individuals without the power to effect change on their own. At times, it may feel like you have no control over your business because you own less than 51% of it. But you do have significant rights and tools to protect and enforce them!
Contact our partnership dispute attorney at MKT Law today by calling (612) 260-5109 and find out about your shareholder rights.
Rights of Minority Ownership
You may have just had the controlling owner “fire” you from your job at your company, lock you out of your own business, strip away your voting rights and roles as an officer or director (Inc.) or as a manager or governor (LLC), so you no longer have any significant say in running the business you own. If you have not seen the company’s books and records despite requesting them, are not paid in a way that is fair compared to your businesses’ other owners, or are being excluded from the daily management and owner’s meetings, you may need legal counsel.
In the event you no longer have a say in significant decisions that affect you and your business, then you may need the help of a St. Paul business litigation lawyer with significant experience enforcing the rights of minority owners’ of Minnesota businesses. All of these actions can be considered unlawful and entitle you to help from the court. As a minority shareholder you have rights to benefit from the company operations, those basic rights include the right to review the books and records of the company, receive dividends/profit distribution, and vote for board of directors.
Business Owners’ Rights under Minnesota Law
Under Minnesota’s Business Corporations Act (MBCA), located in Minnesota Statutes Chapter 302A, or the current Limited Liability Company (LLC) Act, located in Minnesota Statutes Chapters 322B, and under the new Revised Uniform Limited Liability Company Act (effective January 1, 2018), you have rights built into the law to protect you due to your weaker status as a non-controlling owner.
Most of these protections cannot be taken away by the controlling owner no matter how much he or she may want to, try to, and think they can or have. It can be illegal to strip you of your ability to actively be involved with your company, to be employed by your company, and to withhold information about your business’ financial condition. If this is happening to you, call MKT Law today and speak to an experienced litigator who can help protect your ownership rights in your business.
Minneapolis Shareholder Rights Attorney Fighting for Your Rights
Stand up for your rights and call our Minneapolis and St. Paul minority shareholder rights attorney who can work to help make sure your rights are enforced and not violated. It is because you do not own a controlling interest of your business that Minnesota law can protect you from unfair actions by the majority owners of your business.
Do not be taken advantage of or allow the other shareholders to walk all over you. Call the experienced business litigators at MKT Law for help with aggressively protecting your rights. We will stand up and fight for your rights and work to have the individuals in control of your business follow the letter of the law.
As a minority shareholder in a corporation or member of a limited liability company, you have rights:
- Right to information
- A reasonable expectation of lifetime employment
- Right to an active say in the management of your company
- The right to be treated fairly, openly, and honestly by the other owners
Solving Minority Shareholder Disputes
If you are being treated unfairly, being lied to, or your businesses’ financial status is being kept a secret from you by your partners and co-owners, our business lawyers at MKT Law can help. Schedule your initial consultation with our seasoned Minneapolis shareholder disputes attorney. They have extensive experience with many types of businesses going through ownership disputes and with minority owners being stripped of their ability to participate in—and even be employed by—their own companies.
Mark has had his writing on the MBCA under Minn. Stat. § 302A about enforcing and applying litigation rights in this area of business law published in the scholarly publication of the Hamline Law Review. He understands this law’s inner workings and you can use this knowledge to your advantage and for the protection of your rights.
Contact our litigation attorney who can help you enjoy all of your rights the law affords you. We represent clients throughout Minneapolis and St. Paul. Get your business back or get out on fair and just terms.
Contact MKT Law today at (612) 260-5109 for dedicated and trustworthy legal counsel.