What can you do if there is a family owned business that has 5 shareholders.... 4 of which own 80 percent and are committing fraud and you, owning 20% and the minority shareholder, suspect them commit...

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What can you do if there is a family owned business that has 5 shareholders.... 4 of which own 80 percent and are committing fraud and you, owning 20% and the minority shareholder, suspect them commit...

What can you do if there is a family owned business that has 5 shareholders.... 4 of which own 80 percent and are committing fraud and you, owning 20% and the minority shareholder, suspect them committing fraud... they wont give you financial statements either.

HELP

business accounting

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Answer 1

Answer #1

In the given situation we are the minor shareholder and suspect that there is fraud committing in the organisation.

If the members in the company does not supports us and they are not providing the information to us.

Then we have to approach the appropriate authority to file a case against the company as a share holders.

We have 20% of share holding in the company it is not a negligible share of the company .

We have a right to know what is happening in the company as a share holder.

So we can sue the organisation or members if they are not supportive and they are not providing the information about the company affairs.

The shareholder can sue the company and request the organisation or court to make investigation in the company to know what is happening on the organisation.

The shareholder has the rights to ask anything about the organisation information.

If at all the fraud has been came out in the investigation the law will take appropriate action against the organisation.

If no fraud is came out in investigation the doubt of shareholder will get cleared about the organisation.

These are all the information about the situation given in the question.

I hope, all the above mentioned points and explanations are useful and helpful to you.

Thank you.

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Answer 2

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What can you do if there is a family owned business that has 5 shareholders.... 4 of which own 80 percent and are committing fraud and you, owning 20% and the minority shareholder, suspect them commit...

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What can you do if there is a family owned business that has 5 shareholders.... 4 of which own 80 percent and are committing fraud and you, owning 20% and the minority shareholder, suspect them commit...

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