Mon 20th Feb, 2023 Business Litigation

The Florida Business Corporation Act, which oversees corporations formed in accordance with Florida law, provides some rights and safeguards for minority shareholders in Florida.  The following are some of Florida’s most important minority shareholder rights:

  1. Inspection Rights: Minority shareholders have the right to see specific company books and records, including the bylaws, articles of incorporation, and board meeting minutes.
  2. Voting Rights: Minority shareholders have the opportunity to participate in a vote on a variety of corporate issues, including the selection of directors and specific business transaction
  3. Right to Sue: Minority shareholders have the right to sue the corporation, as well as its officers and directors, if they feel that their rights have been infringed or that the corporation’s activities have caused them injury.
  4. Right to Object: Minority shareholders have the right to object to certain business acts, such as mergers or asset sales, and to be compensated at fair market value for their shares.
  5. Right to Share in Corporate Profits: Minority shareholders have the right to share in corporate profits through the payment of dividends and other distributions.

It is important to keep in mind that the specific rights and safeguards granted to minority shareholders may differ based on the articles of incorporation, bylaws, and other governing documents of the organization.  Minority shareholders should also be informed that certain procedures and legal requirements must be followed in order to exercise their rights and safeguard their interests. Minority shareholders should always seek the counsel of an experienced attorney to make sure their rights are upheld.