Hey everyone, hope this is the right place to ask this.
My mom is a minority shareholder in a family business. We just found out that an employee has embezzled ~$1mm over decades operating as head of the company's accounts payables and receivables. The company is run by my uncle, and he isn't interested in pressing charges and has seemed less concerned about this than other shareholders. As such, most shareholders have a long overdue interest in the company's financials and management.
I work in consulting / finance and have always believed this company to be incredibly mismanaged. The extent of this mismanagement and potential corruption goes deeper than this one instance.
I'm wondering what documents we should ask for in order to dig through and get a better understanding of the business, and to what extent my mother, as a minority shareholder, has the right to ask for / demand information. I would greatly appreciate any advise and input. My current thinking is that my mom should request an outside valuation and sell her ownership, but I'm not sure if she can even do that as a minority owner.
My starting data request is the following. Any input or guidance would be appreciated. Thank you!
- income statements
- balance sheets
- cash flow statements
- statement of shareholder equity
- company tax returns
- a current view on company capitalization table
- overview of company bank accounts and balances
- information on company operating structure