minority-shareholder-agreement

Vocabulary Word

Definition

A 'minority shareholder agreement' is a legal document that outlines the rights and obligations of shareholders who own less than half of a company's shares. These shareholders are considered minority shareholders.

Examples in Different Contexts

In corporate governance, a 'minority shareholder agreement' is a contract that outlines the rights and protections for shareholders who own a smaller portion of a company. An attorney specializing in corporate law might state, 'A well-drafted minority shareholder agreement can ensure that minority owners have a voice in significant company decisions.'

Practice Scenarios

Business

Scenario:

Our new investors are protective of their rights; they might insist on a very specific agreement.

Response:

I agree. I will work on drafting a minority shareholder agreement that caters to their specific concerns.

Academics

Scenario:

Let's look at the case study of XYZ Corp. Can anyone explain the role of the minority shareholder agreement in their success?

Response:

The minority shareholder agreement prevented the larger part-owners from making decisions that hurt the small part-owners at XYZ Corp.