Minority Shareholder
A shareholder holding less than 50% of the voting rights attached to the equity and accordingly subject to the control of another shareholder or group of shareholders with the majority.
Minority shareholder
Definition - Noun
: a shareholder whose proportion of shares is too small to confer any power to exert control or influence over corporate action
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To protect or control what minority shareholders can do. For example, a shareholders agreement can provide that for certain specified decisions, a minority shareholder has to agree.
This is intended to give minority shareholders a chance to elect at least one director. For example, there are five directors to be elected and 10,000 shares issued.
Cumulative Voting: A system of voting shares of stock used in some states. Cumulative voting gives minority shareholders additional voting power by allowing them to "cumulate" their votes for a single director.
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(It is unclear how the court would treat a significant ignorant minority shareholder or significant ignorant minority seat on the board of directors. Compare In re CBI Holding, at 365 with FDIC v. Ernst & Young, 967 F.
 See also: Share, Shareholder, Minor, Information, Power
  
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