How volatile is the Equity Beta of a Multinational Company with internally owned share above 51%, a case for minority shareholders’ equity protection?

Equity Beta?

Equity beta, commonly referred to as "levered beta", is the beta of a firm with financial leverage. The equity beta of a firm is different than the asset beta as it changes in positive correlation with the amount of debt a firm has in its financial structure.

A stock’s beta or beta coefficient is a measure of the stock’s level of systemic and unsystemic risk based on in its prior performance. The beta of an individual stock only tells an investor theoretically how much risk the stock will add (or potentially subtract) from a diversified portfolio. For beta to be meaningful, the stock and the benchmark used in the calculation should be related.

Minority shareholder is a shareholder who owns less than 50 percent of the total shares of a corporation's stock. A minority shareholder does not have the voting control of the corporation; neither can s/he single-handedly elect the directors of the corporation.

If you hold the majority of shares in a closely-held corporation or limited liability company, you can control most aspects of the business's operations. But minority shareholders can still act disruptively, and sometimes you want to find a way to remove them.

Under such regulations, controlling shareholders may be prohibited from firing shareholders who have a legitimate expectation of continued employment without cause. If a corporation does oppress a minority shareholder, the shareholdermay have specific legal remedies.

Protecting the rights of minority shareholders. A minority shareholder may bring a claim when the company has been or is being managed in a way that is 'unfairly prejudicial' to some or all of its shareholders (including the claimant).

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