I am a stockholder of a company that is being acquired. The parent company has never reached out to me. What legal responsibility does the parent company have toward the shareholders of the child company? US based company (NY).
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Public corporation, or privately-held?– Ben MillerCommented Mar 15, 2016 at 23:47
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2Probably none... What does the sale contract say?– littleadvCommented Mar 16, 2016 at 2:40
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This is more about corporate finance than personal finance.– DJClayworthCommented Mar 16, 2016 at 2:49
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Both parent company and child company are private. Parent company is not US based.– user3795309Commented Mar 16, 2016 at 3:14
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3@DJClayworth I think he's concerned about what happens to his personal assets, which makes it personal finance. If you say that because the asset is stock in a corporation that that makes it corporate finance, well, by that reasoning, my paycheck comes from a corporation, so any questions I have about managing my personal bank account become "corporate finance". :-)– JayCommented Mar 16, 2016 at 4:26
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1 Answer
The NY company's board of directors are your agents and fiduciaries. I'll call them your agents below. The acquiring company entered into some contract that your agents negotiated. Whatever the acquiring company owes you in terms of money, equity, or specific communication is based on what your agents dealt for in the sale contract. Best ask your agents what they got for you.
answered Mar 18, 2016 at 3:59
