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Ely
Ely, Attorney
Category: Business Law
Satisfied Customers: 101011
Experience:  Counselor at Law.
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I am a shareholder of a private company I used to work for.

Customer Question

I am a shareholder of a private company I used to work for. A public company just bought us.
When is either my old company or the public company required to give me details on the transaction: whether it is cash, stock or both; when we will be paid out, etc.
Thanks!
Submitted: 1 year ago.
Category: Business Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

First of all, they are required to provide whatever information shareholder agreement demands. Therefore that document controls. However even without that, default law in Michigan demands that the company must - at the shareholder's request - provide an inspection of records, financial records, balances, etc - see here:

http://www.legislature.mi.gov/(S(u1lfpq0bqvyj14ss2ij4q3be))/mileg.aspx?page=getObject&objectName=mcl-450-1487

As such, this request can be made and the information sought may be ascertained via the record provided. If the company does not reply or replies poorly, the shareholder can file a Writ of Mandamus in court to force the issue.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Customer: replied 1 year ago.
Private company is California based. Public company is Time inc. I live in Michigan.I should have been more clear on that, sorry. Does that change your answer at all?
Expert:  Ely replied 1 year ago.
No worries at all. Provided one has 5% shareholder rights, CA also has a similar laws. See here:
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=01001-02000&file=1600-1605
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Expert:  Ely replied 1 year ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never rated positively. I am simply touching base. Let me know. Thanks!

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