Legal Question in Business Law in California
Do corporations have to give shareholders a divadend report annually
I am one of three shareholders in a corporation and own 33.3% of stock of this corporation and need to know if i'm entitled by law to a shareholder/divedends report annually or quarterly?
Thanks in advance...
2 Answers from Attorneys
Re: Do corporations have to give shareholders a divadend report annually
You're entitled to see the financial records of the
company at any reasonable time. The company, however,
may not be required to prepare any sort of special
report for you; small corporations can be excused from
that requirement. Check the bylaws of the corporation
as well as any shareholder agreement.
Re: Do corporations have to give shareholders a divadend report annually
This response assumes you own voting, common-stock in a California corporation. As a 33% shareholder, you may have certain rights not normally afforded other minority shareholders, one of which may be an absolute right to access the books and records of the corporation. Another is to have representation on the board of directors (which will afford you much more information than just "dividend" information.) Your question seems to imply you have lost faith in the managers of the business. As such, it is recommended you immediately seek the advise of a local business attorney knowledgeable in corporate law.
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