Reading Time: 8 minutesIntroduction Let’s say you are an investor. You enter a joint investment with a friend and lend him $100,000. Sadly, the joint venture fails, and to make matters worse, your friend has gone bankrupt and transferred half of your money to his wife. Can you get your money back? Unfortunately, once he is declared bankrupt, […]
SMU Lexicon: Shareholders vs Mismanagement by Directors – The power of a Statutory Derivative Action
Reading Time: 7 minutesIntroduction Let’s say you are a minority shareholder. The company is not doing well, and you believe the company’s directors have committed financial mismanagement, or maybe committed fraud. To make matters worse, the other majority shareholders are in cahoots with these directors, so your concerns are dismissed quickly at every meeting. Usually, a company would […]