What Are the Disadvantages of Owning Minority Interest in a Closely

question 97

Essay

What are the disadvantages of owning minority interest in a closely held corporation and how can this be overcome?

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Definitions:

Federal Trade Commission

An independent agency of the United States government, established in 1914 to prevent anticompetitive, deceptive, and unfair business practices.

Administrative Dispute Resolution Act

U.S. legislation that promotes the use of alternative dispute resolution processes, such as arbitration and mediation, in the administrative process of federal agencies.

Arbitration

A method of resolving disputes outside the courts, where the parties to a dispute refer it to one or more arbitrators by whose decision (the "award") they agree to be bound.

Formal Rulemaking

A regulatory process that includes a period for public comment and often a public hearing before a final rule is made by a governmental body.