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Use of Reverse Stock Splits to Eliminate Minority Shareholders

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Chicago Legal Latte

Chicago Legal Latte


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Reverse stock splits can be used to eliminate minority shareholders.  A reverse stock split is the opposite of the conventional stock split -- rather than the corporation’s charter being amended to authorize additional shares of stock, the charter is amended to substantially decrease the number of authorized and issued shares.  They permit direct and relatively inexpensive elimination of minority shareholders in public or closely-held corporations. Learn more about the elimination of minority shareholders in this Podcast with Steven Migala of Lavelle Law, Ltd.