BusinessWeek quoted FindLaw attorney editor Stephanie Rahlfs in a recent Smart Answers column titled The Stockholder Who Wouldn't Sign. The May 4th segment was a Q&A on the topic of small businesses and stockholder agreements. In the piece, a reader who owns shares in a small business inquires if she is legally required to sign an amended stockholder agreement if presented with one; and the repercussions of refusing to do so. Smart Answers columnist Karen E. Klein replies that the issue depends on the amount of ownership the shareholder has in the company.
Rahlfs points out "If your approval would be required to gain such a majority, and you withhold that approval, then the amendment would simply not go into effect. On the other hand, if the amendment is approved by the majority of shareholders and the original agreement includes a "drag-along" right, you'd likely still be bound to it whether you sign it or not."
Click here to read the full BusinessWeek piece.