Archive for November, 2008
Tough economic times can sometimes be used by one’s unscrupulous business partner to mask his fraudulent activities. In times like these, minority owners who suspect improper activity by the majority should be more vigilant than ever.
Often minority shareholders, especially those not intimately involved in the business, simply get used to receiving little financial information about the company. The attitude often is, there’s no cause for alarm as long as the dividend checks keep coming. If you are being paid a dividend, or receiving some other form of payment or benefit from the company, it’s all too easy to fall into the trap of not paying close attention to the company’s finances.