A company's shareholders have lost equity, can they get their share capital back?
Question Details: We have several shareholders with investment, poor management of the largest shareholder, the company lose money, other shareholders can not finance to save the company, so to lose the equity, can we get back from the major shareholder of our money?
Anne Brady / Russell & Brady, PLLC
Answered 7 months ago
This attorney is licensed in Arizona
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Unfortunately, when you buy stock in a corporation, you run the risk that you will lose part or all of your investment if the company does not perform well. If the largest shareholder/manager did something illegal, you might have a claim against him. But if he was just a poor manager, then he lost more than anyone else, and it was just a bad gamble.
