Minority shareholders riding “black”
Minority shareholders are ever more persistently claiming profit sharing. Vladimíra Glatzová, a founding partner of Glatzova & Co. comments in the daily Hospodářské noviny on how the courts in the Czech Republic and abroad perceive this problem.
Minority shareholders are ever more persistently claiming profit sharing. And recently they have even won partial successes in court. Even though the law does not require payment of dividends, the courts tend towards the view that companies should not accumulate profits without reason. The situation in many non-profit organisations is very similar. Minority shareholders claim dividends from their shares, the majority shareholder outvotes them and the dividends are not paid out. Is this abuse by the majority? Hard to say…
(KB, 24. 5. 2010)
#