What right do minority shareholders typically lack when decisions are made by majority shareholders?

Minority shareholders typically lack the right to initiate lawsuits on matters that are decided by the majority shareholders. This concept reflects the principle of majority rule in corporate governance, which allows majority shareholders to make decisions regarding the company's direction and management, often sidelining the influence and input of minority shareholders. Although minority shareholders still possess some rights—such as attending meetings and voicing dissent—the initiation of lawsuits by minority shareholders is often limited or requires special circumstances.

Majority shareholders can make decisions that may not align with the interests of minority shareholders, but the governance structure usually allows them to act decisively without needing the approval of the minority. This dynamic is often a point of contention, as minority shareholders may feel their interests are not adequately represented, yet they may find it challenging to take legal action unless there are specific ground realities like breaches of fiduciary duties or corporate mismanagement. In summary, while minority shareholders retain certain rights, their ability to directly challenge or initiate lawsuits is generally constrained by the decisions of majority shareholders.