A company’s shareholders have lost equity, can they get their share capital back?

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?

Asked on August 16, 2012 under Business Law, Arizona

Answers:

Anne Brady / Law Office of Anne Brady

Answered 8 years ago | Contributor

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.


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