Legal Question in Business Law in Minnesota

Closely Held Corporation

Can the stockholders in an employee owned, closely held corporation vote to disallow one stockholder the right to run for the board of directors, when all other stockholders are allowed to run for the board?


Asked on 3/31/09, 4:44 am

2 Answers from Attorneys
Daniel Reiff Reiff Law Office

Re: Closely Held Corporation

That would depend on the corporate documents. It seems strange that they would say that, and my guess is that there are other issues than simply that one going on. I would guess that those issues need to be resolved quickly to prevent the business from being severely harmed.

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Answered on 3/31/09, 1:18 pm
David Anderson Anderson Business Law LLC

Re: Closely Held Corporation

The articles and bylaws govern. If they provide that a majority of SH's decide who is on the Board, that decision stands.

Likewise, they could also determine who is eligible to run for board.

But they must follow the Articles and Bylaws.

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Answered on 3/31/09, 7:15 am


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