Legal Question in Business Law in California

Do corporations have to give shareholders a divadend report annually

I am one of three shareholders in a corporation and own 33.3% of stock of this corporation and need to know if i'm entitled by law to a shareholder/divedends report annually or quarterly?

Thanks in advance...


Asked on 2/04/00, 9:40 am

2 Answers from Attorneys

Joshua Genser Joshua G. Genser, Attorney at Law

Re: Do corporations have to give shareholders a divadend report annually

You're entitled to see the financial records of the

company at any reasonable time. The company, however,

may not be required to prepare any sort of special

report for you; small corporations can be excused from

that requirement. Check the bylaws of the corporation

as well as any shareholder agreement.

Read more
Answered on 2/04/00, 6:41 pm
Roger Renfro Renfro & Associates Law Corporation

Re: Do corporations have to give shareholders a divadend report annually

This response assumes you own voting, common-stock in a California corporation. As a 33% shareholder, you may have certain rights not normally afforded other minority shareholders, one of which may be an absolute right to access the books and records of the corporation. Another is to have representation on the board of directors (which will afford you much more information than just "dividend" information.) Your question seems to imply you have lost faith in the managers of the business. As such, it is recommended you immediately seek the advise of a local business attorney knowledgeable in corporate law.

Read more
Answered on 2/07/00, 11:21 am


Related Questions & Answers

More Business Law questions and answers in California