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I invested a small amount of money into my previous employer's employee stock options program. When I left the company a few years ago, I decided to exercise some options that had already vested.

The company is still around, still private, but I have no idea what is going on inside. I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

I have not heard back yet.

It's less than 1% of my portfolio, but I am annoyed that as a small investor I feel like I'm being ghosted.

What are my rights as a small investor in private equity, and what can I do about this?

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  • This is the reason I don't think it's wise to have shares in private companies, unless you have enough to force your voice to be heard.
    – o0'.
    Dec 18, 2022 at 14:56
  • Well there's always a minority investor lawsuit, but that's just as likely to get you bought out. Anyway, "out" you should be, as I gather you take your salary from the same industry, which means you are already overinvested in that industry.
    – Harper - Reinstate Monica
    Dec 19, 2022 at 3:23

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You have a right to turn up at the AGM (and any special general meetings), and ask questions there. Otherwise, they are free to ignore you.

They are unlikely to give information about the business' finances and future plans, without also making the same information to all the other investors.

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    What if they aren’t sharing the time/location of the AGM with investors?
    – Jacob Krall
    Dec 19, 2022 at 0:59
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    It should also be emphasized that, at any reasonably-middling-to-large company, all employees should be receiving regular training, specifically instructing them not to reveal material, nonpublic information to anybody, so of course they shouldn't respond to private inquiries, unless that's their whole job (e.g. the CFO, some kind of 'investor relations" person, or a similar role). If you're just reaching out to random employees, it is legally unwise for them to talk to you directly.
    – Kevin
    Dec 19, 2022 at 8:18
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    @JacobKrall then you need to check with the company directors that they have the correct contact details for you. If they have, then you would need to take legal action against the company
    – Simon B
    Dec 19, 2022 at 11:25
  • Yeah, they did none of the above, no training, no comms. I expected to receive some sort of regular communication after I left, but nada.
    – mxk
    Dec 25, 2022 at 10:33
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When I left the company a few years ago, I decided to exercise some options that had already vested.

The company is still around, still private, but I have no idea what is going on inside. I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

Are you sure you are even a stockholder? Sometimes when you leave you lose the ability to hold those shares. Of course that information should have been in your paperwork related to your options or your end of employment.

You say it has been several years, but there could have been several tax forms that they should have provided to you and the taxing authority. You should have had to address those forms on your tax forms.

I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

I would look through the investment paperwork to find out how to contact the correct office. There may even be an outside organization that handles the share ownership issues. You will want to make this a priority to address any back tax issues.

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    Yes, I'm a shareholder. I exercised stock options, so I now hold company stock, but it's illiquid because the company is still private. Thanks, I'll see if I can find anything in the stock options plan docs!
    – mxk
    Dec 25, 2022 at 10:32
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    Taxes were paid when I exercised, so that's not an issue.
    – mxk
    Dec 25, 2022 at 10:32
  • But you may have had other tax obligations as a part owner of the company. Each year they may have had to send out tax forms to all the owners.
    – mhoran_psprep
    Dec 25, 2022 at 12:16

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