What is the Business Judgment Rule and Why Should a Shareholder Care About it?

Board of Directors People Speech Bubbles Discussion Company Lead

In its broadest sense, the business judgment rule is a policy of respect by the courts for the business judgment of corporate directors in exercising their discretion in making corporate decisions.

There Are Myriad Ways for Greedy Insiders to Oppress Minority Shareholders of Private Companies

I use the term “shareholder oppression” to refer to the denial of any realistic benefit to a shareholder for their investment in the company. So, how do the people in control of a privately held company oppress minority shareholders? I will discuss that in this article.

Shareholders Rights to Corporate Annual Financial Reports Under California Corporations Code §1501(a)

Assets

Corporations have a statutory and fiduciary duty to provide shareholders with an annual report containing an up-to-date balance sheet, income statement, and a statement of cash flows accompanied by any independent auditors’ reports, within 120 days of the end of the previous fiscal year.