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Otso Gold Corp. V.OTSO

Otso Gold Corp is a gold mining company. The company's only segment being acquisition and exploration of gold resource properties. Geographically, it has a presence in the Americas and Europe.


TSXV:OTSO - Post by User

Comment by QuantumPhysicson Dec 07, 2021 6:38am
161 Views
Post# 34205190

RE:RE:Otso gold addtitional/new info (?)

RE:RE:Otso gold addtitional/new info (?)Well all minority shareholders irrespective of number of shares have some basic shareholder rights laid out in Corporate Law and Listed Regulatory Laws the purpose of which is to protect minority shareholders to get screwed at the hands of a majority shareholder . That often is the case where a majority shareholder takes decisions unilaterally coz he has the powers to do it but at the cost of minority shareholders. To cite some examples would be that a minority shareholder is within his/her rights to question irregular agency fees, unfair dilution or unproven dilution (read cost of dilution against interests of minority shareholders), misconduct or compliance at the hands of management and board, financial information access , whistle blowing on matters related to misconduct/non compliance. So in simplly put minority shareholder rights are pretty much related to corporate governance which is meant to protect minority rights. Important to note here is minority shareholder activism as a subject has become highly specialized in large free float companies and it presumes the shareholder has qualified knowledge of board/mgmt governance, legal structures, financial structures, legal agreements, understanding financial statements from the very source, fund raising structures, shareholder book to name a few. Such is the case coz the shareholder who goes in for actvism understands the shares are mispriced for some very fundamental reasons and the effort is to allign governance towards shareholder value. And often companies with a majority shareholder influences the board and management towards his/her interests with an over riding assumption that the minority shareholder does not have the bandwidth of knowledge required to exercise shareholder rights.
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