Quote:
Originally Posted by Jeewhizz
Great thread, and great to have you on here 
What about this scenario:
Person A buys a small share in Company A. Person B has the remainder of shares. Person B over a number of months/years then runs the company into the ground. Where does that leave Person A, and the value of their shares? |
If person A has less than 50% shares as it seems they would from your scenario, they are in a pretty week position of a Private Limited Company.
If Person B owns a majority of the shares or is in a position where they can control the majority of the voting structure, Person A's only angle would be to legally prove that Person B was not acting in the companies best interests (assuming he was also a Director). As a Director Person B would have a responsibility to act in the companies and the shareholders best interests, if he was simply a manager and a shareholder, action could be taken by the directors such as Person A to protect their interests under employment law.
My HO!