Clawback in a contract requires that an employee returns the money paid to them by their employer. Remember that every employee signs a contract promising to deliver as the employer expects. However, when the performance report indicates otherwise, the clawback provision helps the employer solve the case. You have to pay the penalty aside from …
Generally, a shareholder can refuse to sell their shares, per the terms of the agreement. If there is no agreement or the agreement doesn’t have a buyout clause, then the shareholder may be forced to sell their shares. If part of the agreement requires a shareholder to sell their shares, then the majority shareholder can …
Generally, shareholders hold power in a company, and the directors are responsible for its daily operations. Often, shareholders and directors work together and decide the way forward for the company. However, this isn’t always the case, and disputes between directors and shareholders are common. Conflicts occur when shareholders disagree with the actions taken by directors. …
The specific shareholder rights available to you as a shareholder in a private company will vary based on several factors, including the types, or classes, of stock offered by the corporation. Generally, there are two different classes of stock — common stock and preferred stock. Each class of stock comes with a particular set of …
What Are My Rights as a Shareholder in a Private Company? Read More »
In most situations, directors and the board can overrule the wishes of the shareholders. A shareholder is an individual who owns shares of stock in a company. Shares are units of ownership that represent fractional parts, or percentages, of a company. Ownership gives shareholders the right to vote on certain matters such as electing directors …
Preemptive rights grant existing shareholders buying preference when new shares of the company are issued. Essentially, the purpose of preemptive rights is to guarantee that an existing shareholder’s ownership interest is not reduced if the company issues more shares. A shareholder is an individual who owns shares of stock (units of ownership that represent fractional parts, …
Why Are Preemptive Rights Important to Shareholders? Read More »
