Legal Question in Business Law in Alabama

Shareholder rights

What rights do a shareholder have in a corporation? I am a shareholder and the only time we know that any changes or any business going on with the company is at the annual meeting. We get a finanical report once a year and after that we do not know anything else. We have tried to get copies of several documents but was turned down. So can you please tell me what are my rights and what am I entitle to as a shareholder.


Asked on 3/12/07, 12:46 pm

1 Answer from Attorneys
Chip Browder Hubbard, Smith, McIlwain, Brakefield & Browder, PC

Re: Shareholder rights

The Alabama Business Corporation Act provides certain "safeguards" to shareholders, including "minimum" information rights and, these statutory provisions "may" be of help to you, provided of course, that the subject corporation is incorporated as an Alabama entity (that is, that Alabama law governs the management and governance of the business).

You can go to the Ala Sec of State's web site and look up this corporation and then determine if it is indeed "formed" in this State -- will show the county of incorporation.

If an Alabama corporation, then as a shareholder you are entitled to certain information IN ADDITION to the annual financials. If not an Alabama corporation, the other state's law might still provide some protection for you but you would need to speak with an attorney in that particular state to inquire further.

Contact a local attorney for assistance, or if we can be of further assistance, please don't hesitate to give us a call. Have a Blessed Rest of the Lord's Day and coming week. Kindest regards, Chip

Read more
Answered on 3/18/07, 10:40 am


Related Questions & Answers

More Business Law questions and answers in Alabama