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Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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I am a shareholder in a publicly traded company in which the

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I am a shareholder in a publicly traded company in which the CEO is destroying it. The shareholders have no idea what to do to stop the destruction. There is no is on the Pink Sheets...and no mechanism in which he is accountable to anyone...he gives large blocks of shares as he wishes,makes all decisions with no input ar accountability to anyone. He has given most of the preffered shares to 3 insiders and himself and it seems we have no say or rights. They just did a 600 to 1 reverse and now the stock again has lost 70% of its value within the last two weeks AFTER the reverse. The technology is incredible as are the scientists but the CEO has zero background in pharma or business. We have major funders that would like to help but not with the current CEO. Is there anything we can do as the largest shareholders to bring the CEO to accountability or get rid of him completely? Thankyou for your time and answer....
*Nothing herein is intended as legal advice, only intended as general information to better help yourself.*


Thanks for using JustAnswer. My name is XXXXX XXXXX I will do whatever I can to answer your questions!

Don't Forget that the deposit you placed to ask this question is not used to compensate me until you rate my service ! Please Remember that when you are asked to give a rating, you are rating My Service and not this website itself or the law .

You may file a complaint with the SEC at this link:

Additionally you may consider filing a shareholder's derivative action against the CEO. A derivative action allows a shareholder to bring an action in name of the corporation against a 3rd party such as the CEO that is allegedly causing harm to the corporation.

A shareholder's derivative action requires legal representation.
Here is a link to a free site that may assist you in locating competent legal counsel:

I would be glad to respond to any related follow-up questions that you may have.
Ellen and other Business Law Specialists are ready to help you
I see that you rated my service as "OK" - although I appreciate the positive rating, is there something else that you wanted to know? It's my aim to provide excellent service.
Customer: replied 4 years ago.

another lawyer said we could vote in a board that then makes him accountable and possibly vote him out...your answer did nothing more than give me a generic site to post a complaint which anyone would have already known for free....definitely wasnt satisfied with the very incomplete answer

The SEC is the legal authority that investigates the fraud and mismanagement that you have described. This is the first place that any investigation must begin

It is correct that if you control the majority of the stock you can then vote in a Board that would be willing to remove the CEO. However since this CEO is handing out large blocks of stock, I have to assume that you do not control the majority. Therefore in order to remove the CEO as a minority shareholder you would need to bring a derivative action

I hope that my answer more completely addresses your concerns but if not please feel free to respond with a follow-up question