Hello! My name is Kimberly Peterson. I am an experienced financial advisor with a diploma from University of Chicago and almost 12 years of work in the field. In my line of work I learned a lot of useful hints and loopholes as well as a gret deal of pitfalls associated with loans and credits. I prepared this website to offer you my expertise and asnwer the most common problems, so that you can ejnoy your loans safely.Minority shareholders can affect your debt status
The question we are looking at here is how much and when you involve minority shareholders (in non-family companies) in your exit plans. In all companies, the first consideration is your shareholders’ agreement. Where you have one, it should deal with the question of whether minorities are compelled to sell their shares when the majority owner wishes to and, if so, it will guide you in deciding how much and how early you need to involve minorities with your exit plans. Of course, what you need to do is not necessarily what you feel you should do and it could be a matter of personal preference when you tell minority shareholders of your exit plans.
Where you do not have a shareholders’ agreement, the position is completely different. If your plans are to sell the whole company, it is now not a question of merely advising the minorities of your intention to sell: you will need to get their agreement that they will sell their shares. In these circumstances, you need to involve minorities as early as possible in your plans and do one of two things, either get their acknowledgement in writing that they will sell their shares when you wish to sell yours (and on the same terms), or enter into a full shareholders’ agreement that compels them to do so.