Request for Question Clarification by
serenata-ga
on
17 Sep 2003 12:57 PDT
Hello Needanswer ~
By virtue of the fact you use the word "shareholders", I am assuming
your "company" is a corporation incorporated within one of the 50
United States - as corporations issue 'shares' of the company
representative of ownership. And by "private", you are referring to a
company whose shares are not actively traded on any of the stock or
securities exchanges.
Most state corporation statutes operate under the assumption that each
corporation will adopt bylaws to define the rights and obligations of
officers, persons and groups within its structure, and the rights of
shareholders are defined within the By-Laws.
Without an idea of the state in which your company is incorporated or
a look at the By-Laws of the company, it is impossible to answer your
question with any degree of authority, except in the very broadest
sense.
For instance: certain states require a fiduciary duty of disclosure to
shareholders with specific rights granted with regard to certain
undertakings, and other states require only basic rights of
shareholders, such as electing the directors of the corporation.
If you could provide more information, such as the state in which the
company is incorporated, we could at least give you the requirements
within that state, and where you might be able to find the
shareholders' rights.
Thanks,
Serenata
