The avoidance of hold out <u> </u><u>minority</u> shareholders is an advantage of acquiring another firm by purchasing its assets.
Who is a minority shareholder?
A minority shareholder is a shareholder who does not have control over a corporation.
Typically, the minority shareholder has less than 50% of the corporation’s voting shares.
While many minority shareholders have some say over the company’s affairs, the majority shareholder will typically have the most control over the corporation.
In most cases, minority shareholders have at least some rights. Most Texas corporations will discuss the rights of shareholders in the company’s bylaws.
In most companies, shareholders will have the right to vote on certain corporate matters, such as the election of directors.
Some corporations utilize separate share classes, and some classes may not have voting rights.
