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I invested a small amount of money into my previous employer's employee stock options program. When I left the company a few years ago, I decided to exercise some options that had already vested.

The company is still around, still private, but I have no idea what is going on inside. I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

I have not heard back yet.

It's less than 1% of my portfolio, but I am annoyed that as a small investor I feel like I'm being ghosted.

What are my rights as a small investor in private equity, and what can I do about this?

JohnFx
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mxk
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2 Answers2

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You have a right to turn up at the AGM (and any special general meetings), and ask questions there. Otherwise, they are free to ignore you.

They are unlikely to give information about the business' finances and future plans, without also making the same information to all the other investors.

Simon B
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2

When I left the company a few years ago, I decided to exercise some options that had already vested.

The company is still around, still private, but I have no idea what is going on inside. I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

Are you sure you are even a stockholder? Sometimes when you leave you lose the ability to hold those shares. Of course that information should have been in your paperwork related to your options or your end of employment.

You say it has been several years, but there could have been several tax forms that they should have provided to you and the taxing authority. You should have had to address those forms on your tax forms.

I tried to contact them through various channels and individuals on LinkedIn to ask how I can learn about what happens to my investment and what the company's plans are w.r.t. liquidity events.

I would look through the investment paperwork to find out how to contact the correct office. There may even be an outside organization that handles the share ownership issues. You will want to make this a priority to address any back tax issues.

mhoran_psprep
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