Large corporations are very often owned, at least in part, by shareholders who have purchased shares in the company on a public exchange. These shareholders have certain rights that allow them to vote and steer the course of the company. However, when an individual is a minority shareholder, they may feel that their voice is being drowned out by the company’s majority shareholders. As we’ll see from looking at the work of Juan Monteverde, a leading securities attorney, minority shareholders have many rights that can come to their aid in such a situation.
Juan Monteverde background
Let’s first take a brief look at the professional history of Juan Monteverde, since his work is instrumental for those wanting to better understand shareholder rights. His firm, Monteverde & Associates, is a national class action law firm that works to protect shareholders and consumers from instances of corporate misconduct. In this pursuit, the firm often represents shareholders who have incurred financial loss due to fraud or misleading statements made by a company in which they are invested. This work focuses on instances where companies have acted without certain required interests of their shareholders in mind.
Monteverde himself is known for working on cases where shareholders have failed to obtain fair value for their shares as a result of corporate mergers. His work in these cases is directed at both recovering damages for his clients and improving the merger process itself. Monteverde’s work in this area has earned him recognition from a variety of organizations including Super Lawyers, which has listed him as a New York Metro Rising Star in Securities Litigation for multiple years running. In light of his extensive experience, the attorney has also worked to educate others in this field by authoring articles and engaging in public speaking.
Rights explained
One area of securities law that is important for members of the public to understand is the issue of minority shareholder rights. While minority shareholders are afforded the right to vote on issues of corporate importance, without additional protections they may be exploited in certain situations. To help avoid this type of exploitation, most states have regulations in place that work to protect the rights of minority shareholders and to see that majority shareholder don’t take advantage of their position of relative power.
One concept commonly put in place to achieve the above goal is the idea of fiduciary duty by majority shareholders. Put simply, this is the concept that majority shareholders have a duty to deal with minority shareholders with care, good faith, and loyalty. Obviously, directors and management teams will also need to act in the company’s best interest with care, good faith, and loyalty.
Knowledge of the regulations and common practices surrounding minority shareholder rights is an important consideration for any investor seeking to purchase shares in a publicly-traded company. This knowledge will help them ensure that their interests will be protected, regardless of what percentage of the company they own. Work by securities attorneys, like Juan Monteverde, helps to ensure these regulations are properly enforced. Look to him and others in the field for further information on this important subject.
