# kaal:claim:3017612-019

**Claim.** Veto rights are the price minority shareholders extract for capital: minority holders may withhold capital contributions unless they receive veto powers over major corporate decisions.

**Type.** mechanism  **Support.** asserted

**Holds when.**

- closely held corporations seeking minority capital

**Source quote.**

> For example, minority shareholders may refuse to provide capital contributions unless they are granted veto powers over major corporate decisions such as asset sales,

**From.** Wulf A. Kaal, *Shareholder Agreements - National Report of the United States of America* (2017), III.1 Shareholders' Agreements on Shareholder Rights, page 9

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

**Verify.** sha256 of source PDF `33821db406f92efbe1698fbaed37687595c13b7ce5463b4a879df679fd4af1ac` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202017%20-%20Shareholder%20Agreements%20-%20National%20Report%20of%20the%20United%20States%20of%20America.pdf

**Topics.** corporate-governance

**Keywords.** veto-rights, minority-shareholders, capital-contributions, supermajority

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