@ayalalawpa: Let’s say you own 20% of a corporation, then the company issues more shares, and suddenly you only own 10%. That’s share dilution—and yes, it can be completely legal. Here’s the catch: Unless your corporate documents or shareholder agreements prohibit it, directors can approve new share issuances, but it must be in the best interest of the company, not to benefit insiders or oppress minority shareholders. Dilution isn't always bad. If it brings in capital and grows the business, your smaller slice could be worth more than before. Need help reviewing corporate documents or protecting your shareholder rights? Please don’t hesitate to direct message (DM) us or comment “LEGAL” in the comments. You can also contact us below: 📞 (305) 570-2208 ✉️ [email protected] . . . . #businessowner #businesstiktok #businesstok #entrepreneurlife #entrepreneurtok #startuplife #fyp

Ayala Law P.A.

Open In TikTok:

Region: US

Tuesday 05 August 2025 15:10:39 GMT