kaal:claim:3017612-012

Shareholder agreements matter more in closely held corporations because minority holders have sunk substantial time or capital into the enterprise yet cannot exit through sale, since their shares lack a ready market.

Source quote, verbatim

Minority shareholders in a closely held corporation are likely to have invested substantial time or capital in the enterprise, but those dissatisfied with the corporation's operation cannot sell their shares easily because the shares are not readily marketable.

From

Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017), II. Regulation of Shareholders' Agreements, p. 6
https://ssrn.com/abstract=3017612 · source PDF

Cite as

Wulf A. Kaal, Shareholder Agreements - National Report of the United States of America (2017). SSRN: https://ssrn.com/abstract=3017612

Holds when

closely held corporations
dissatisfied minority shareholders

Classification

mechanismsupport: arguedcorporate-governancedefi

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 33821db406f92efbe1698fbaed37687595c13b7ce5463b4a879df679fd4af1ac. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/bae82f14c36b1744...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3017612-012.md | sha256sum