Minority Shareholder Dispute Warning Sign: You Lack Access to Books and Records
After a partnership and shareholder dispute arises, more often than not, it is easy to look back and see some of the warning signs that you may have overlooked. This is especially true for minority shareholders or partners who lack day-to-day control. In this video Mr. Internicola, Esq. explains – for minority shareholders and non-controlling partners - why your lack of access to business and financial records may, in and of itself, be a warning sign for a dispute to come.
Consider that if you are an equity owner of a business – even if you are a minority shareholder – you nevertheless possess a right to review the books and records. Consider also that as a shareholder you may or may not be entitled to annual distributions. Whether you receive distributions or not you must review and compare the financial statements of your business with the tax returns filed for the business. Just receiving a K-1 is not enough.
To Learn More about Your Rights as a Minority or Non-Controlling Shareholder, order a complimentary copy of Charles N. Internicola's book, "The New York and New Jersey Partnership Dispute Guide" (Click here to order your complimentary copy).
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