Legal Question in Business Law in Oregon

Shareholder Rights in S Corporation

There are 3 shareholders - one having 51% and two having 24 1/2%. The majority (51%) shareholder is president and sole director, makes all decisions including salary and the decision not to distribute profits. What percentage of shareholders is needed to change the by-laws? These shareholders are siblings.


Asked on 4/14/09, 6:16 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

Re: Shareholder Rights in S Corporation

The rights of the minority shareholders are set out in the company's bylaws. The percentage vote needed to change the bylaws should also be set out in the bylaws. The relationship of the shareholders should not have any effect on these rights.

Read more
Answered on 4/16/09, 2:57 pm


Related Questions & Answers

More Business Law questions and answers in Oregon