

Rights of private shareholders - johnrob

What rights does a shareholder have in a startup?  Is the company legally bound to disclose:
- Num shares outstanding?
- Valuations during funding rounds?
- Revenue &#38; Operating costs?
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sarosh
It depends on the state of incorporation; depending on where you incorporated
and that laws of the state with respect to minority shareholders, there may be
a legal process known as "an accounting" under which shareholders must divulge
specific information or face court order. Does your company have bylaws? If
so, then some of the disclosures may be controlled by those provisions. Of
course, the best advice on this topic is from an attorney....but failing that,
check out the Delaware BCL (Delaware's Business Corporation law)...

