|
|
|
What power do minority investors have?
Without control of the board, minority investors can only block proposed actions through the exercise of veto rights; they typically don't have the power to take actions. However, veto rights can be used by investors as negotiating leverage when it comes to important decisions such as financing or sale of a company. The holders of a specified percentage of the minority investors' shares should be able to exercise or waive veto rights on behalf of all minority investors. Don't give each investor a veto right.
|
|
