How Much Power Do Stockholders Have?

                                   

Most people associate the electoral college system with the United States presidential election. You might not be aware that most of those who hold stock in a company also participate in a system much like the electoral college each time they vote for a board of directors. If this is the case, how much power do stockholders really have when it comes to publicly-traded companies?

You’ll Have Minimal Say Regarding Daily Operations

When you purchase stock, you essentially become a part owner of the company. However, you likely only purchase a very small percentage of the overall ownership. This means you have little to no input on the daily operations of the company. This being said, you do have a say in who can make such important decision because you can vote for the board of directors.

The Importance of Voting for Directors

The board of directors of a corporation has a direct say in how a company operates, which lends to the company’s overall success. The board also selects the CEO and other important executives, who oversee the company. As a stockholder, you can vote for who you would like to have such decision-making and oversight authority. In turn, you can influence the decisions that are made on a daily basis and that success of the corporation, including the value of your stock.

Do All Stockholders Have Voting Rights?

Voting rights can vary based on your stockholder agreement. Check your agreement to see when your voting rights kick in and the extent of those rights. For example, in some companies, owning three percent of stock for at least three years can give you voting rights, though this can vary from company to company. You should discuss your stockholder rights with a business attorney if you need assistance understanding them.

Disagreeing With the Board

Even if you vote for a board of directors, you may disagree with decisions they make and you may have the right to take action. This may be the case if the decision is a major one that critically affects the business, including:

  • Mergers and acquisitions 
  • Selling part or all of the company 
  • Changing stock availability or selling unissued stock 
  • Substantially and inappropriately changing the salary, benefits, or other compensation of the CEO or other executives 

If you disagree with such decisions, you may be able to vote against the board, sell your stock interests, try to get on the board yourself (if you own enough stock), or even file a lawsuit against the board of directors or managers. Note that a lawsuit may allege they are not acting in the best interests of the company.

Contact a Houston Business Law Attorney for More Information

Exercising stockholder rights can be important for both the stockholders and the company as a whole. If you would like more information about your rights as a stockholder or about any aspect of business law, please call The Weisblatt Law Firm at 713-714-4634 or contact our office online to schedule an appointment.
                                      

Andrew D. Weisblatt earned his J.D. from South Texas College of Law in Houston, Texas. His initial practice was with Alvin M. Rosenthal, one of the great lawyers in Houston’s history. After several years of practicing together, Alvin retired and Mr. Weisblatt grew the firm from a two lawyer shop to about a twenty person shop.

Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. In 2009 Mr. Weisblatt started the The Weisblatt Law Firm, L.L.C. with the goal of creating a special law firm which could cater to a few clients and provide them the best in legal services and customer service. It is a matter of great pride to Mr. Weisblatt that the very first customer who hired him when he started in 1992 was also the first customer of The Weisblatt Law Firm, L.L.C. continuing a many decade long relationship.

Mr. Weisblatt is proudly a member of the State Bar of Texas and several of the practice committees. He also is an avid reader, an exercise buff, and participates each year in the annual diabetes walk.

EDUCATION:
  • Mediation Training from A.A. White Dispute Resolution Center 2004
  • JD from South Texas College of Law 1992
  • BA from University of Texas System, Austin 1988

WORK EXPERIENCE:
  • Manging Partner (The Weisblatt Law Firm, PLLC) 2009 - Present
  • General Counsel and Chief Operating Officer (Allied Fitting, L.P.) 2005 - 2009
  • Managing Partner (Weisblatt & Associates, Inc.) 1992 - 2005

AWARDS:
  • Top Attorney of North America (Who's Who Legal) 2015
  • College of the State Bar of Texas (College of the State Bar of Texas) 1993
  • American Jurisprudence Award in Oil and Gas Law (West Publishing Company) 1992

ASSOCIATIONS:
  • Katy Bar Association
  • United States District Court for the Southern District of Texas
  • State Bar of Texas, Business Law Section
  • State Bar of Texas, Real Estate, Probate and Trust Section
  • State Bar of Texas, Litigation Section
  • State Bar of Texas
  • State Bar of Texas - Corporate Counsel Section
  • State Bar of Texas, General Practice, Solo, and Small Firm Section
  • State Bar of Texas, Labor and Employment Law Section

 CONTACT:
(Katy Office)
The Weisblatt Law Firm, PLLC
2312 Katy Fort Bend Rd
Katy, TX 77493
Phone: 713-666-1981
Fax: 832-415-0215
Email: adw@weisblattlaw.com



(Houston Office)
The Weisblatt Law Firm, PLLC
1800 St. James Place, Suite 105
Houston, TX 77056
Phone: (713) 877-1961









If you hire employees for your business, there are a number of federal and Texas laws with which you must comply. These laws involve wages, overtime, anti-discrimination, taxes, and more. One important issue that you will face is deciding how and when you will give your employees time off work. The following are some laws and legal issues to consider when making this determination.

FMLA

The Family and Medical Leave Act (FMLA) applies to private companies that have at least 50 employees, as well as all schools and public agencies. The law allows qualified employees to take up to 12 weeks of leave per year for certain reasons, specifically:

Childbirth or adoption of a child
Serious health issues 

Caring for a family member with a serious health issue 


While you do not have to pay employees for time off under FMLA, you are prohibited from terminating or retaliating against an employee in any way for exercising this right to take leave.

Sick Time

It happens – employees will get sick. No Texas or federal law requires businesses to allow job-protected sick time for employees nor requires employers to pay employees for sick time. Some states and cities in the United States have begun passing laws regarding mandatory paid sick time. In fact, one councilman has proposed such a measure in the Dallas area. For the time being, however, sick time is not required.

Many business owners choose to provide employees with sick leave as without it, turnover can increase significantly. When you do allow sick time, you want to ensure your policies are clear and consistent. Specify which employees are eligible for how much sick time. Address time periods during which certain sick days can be used and whether sick time can carry over. Any discrepancies in how you handle sick leave between employees can possibly lead to allegations of discrimination.

Vacation Time

Approach vacation time is similarly to sick time – if you choose to provide vacation leave, have clear and consistent policies in place. Also, once you have a written policy or a vacation provision in an employment contract, the paid vacation time promised can be enforced under Texas Payday Law. If you fail to provide the paid leave promised, your employee can take legal action against your company.

You want your employees to be healthy and satisfied, so providing time off may be a preferable choice. You want to ensure that any policies are in compliance with all relevant laws and that you apply these policies fairly and in a manner that protects your business from any possible liability.

Contact a Texas Business Law Firm for Guidance Today

Hiring employees can be an exciting sign of growth but can also complicate matters substantially. You should never hesitate to seek the advice of an experienced Houston business attorney who is familiar with Texas law. The Weisblatt Law Firm can review your situation and help ensure that you are conducting your business in line with the law and can address any other legal matters you may face. Call us today at 713-352-0847 or contact us online for more information.

In business, there are many situations in which you may benefit from sharing confidential information with another party on a conditional basis. For example, many businesses that operate in the Houston area and throughout the state of Texas operate using proprietary information that provides them with an advantage in the marketplace. Information that can result in a competitive advantage can take a variety of forms such as a client list. a manufacturing technique, or an analytical process. In addition, there are scenarios in which a business or an entrepreneur must describe an idea in detail to investors, manufacturers, developers, or other parties simply to explore its viability.

So, how can people in this position protect themselves while sharing the information they need to share with others in order to achieve their goals? One way is through the use of a non-disclosure agreement, or NDA. At their most basic, non-disclosure agreements are a contract between two or more parties agree to share information between one another but not to disclose the shared information with others. In many cases, a well-crafted non-disclosure agreement can protect a party’s intellectual property from misappropriation by those with whom the party must share it.

What Should Be Included in a Non-Disclosure Agreement?

Non-disclosure agreements are complicated documents that should always be drafted by an experienced lawyer. Every non-disclosure agreement needs to identify the following:

The parties to the agreement
The information that is deemed confidential
The extent to which the party receiving the information must keep the information received confidential
Any information that is excluded from the agreement
The length of time the agreement will be in place

The Importance of Retaining an Experienced Attorney to Draft Your Non-Disclosure Agreements

Whether you are planning on using non-disclosure agreements with your employers, partners, investors, or developers, it is essential that the NDA you use is clear, enforceable, and protect your rights. Failure to achieve these goals could result in a situation in which you disclose information to another party who is under no obligation to keep the information confidential or to not use it for his or her own benefit. In this way, a poorly drafted NDA could result in the unnecessary loss of lucrative business opportunities that could have been avoided simply by retaining an attorney familiar with this area of law. For this reason, if you believe that you may have the need for an NDA, you should consult with an experienced lawyer as soon as you can.

Call the Weisblatt Law Firm Today to Speak with a Houston Business Attorney

Andrew Weisblatt is a business lawyer in Houston who has been practicing law form more than 25 years. He is committed to being accessible to all of his clients and providing clear and effective legal advice that advances his clients’ interests. Mr. Weisblatt is qualified to provide counsel and representation across a wide range of matters., including entity formation, business transaction, contract disputes, contract drafting, employment issues, and real estate transactions, just to name a few. To schedule a consultation with Mr. Weisblatt, please send us an email or call our office today at 713-352-0847.


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