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path of least resistance
court proceedings
Remedial Options For Shareholders Oppressed By Corporations
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Corporate abuse reports almost sicken the honest, hardworking man who’s spent several decades building momentum within some company which promised the world on some golden platter if that employee bought several shares of stock. Also sitting at the butt end of majority owners’ jokes are minority partners, owners of micro-portions of giant companies, often several hundred in strength. To the oppressed minority shareholder, battling other equally indemnified stockholders isn’t the underlying goal; preventing corporate abuse, however, is. Remedial options to curtail oppressions are listed below.

Shooting For Dissolution

Perhaps similar to jumping headfirst into shark-infested tanks, asking courts to dissolve businesses takes quite substantial amounts of mitigating evidence in your favor. Working better when several entities seek this form of relief, dissolving businesses must only transpire when complete abuse is provable. Courts vie for other solutions to keep business doors open, often times with heavy penalties attached to their decision. Saving this option when no other relief is plausible would be in your best interest, unless your attorney stands to gain several million dollars from representing such proceedings.

Buying Out

Shareholders do possess the option of allowing their shares to be purchased, sometimes called ‘liquidated’, by either other shareholders or through corporate buybacks.Through these court proceedings, judges will force the majority to gobble up what little shares the minority owns to completely relieve them of further harassment. Final purchase prices are determined by current FMV, or fair market value, and paid directly to all minorities individually, minus any legal fees.

In certain instances, the legal fees will also be the responsibility of major holders. Many people deem this route as, by far, the path of least resistance when the minority doesn’t actually work for the company.

Derivative Litigation

Finally, the oppressed minority shareholder may opt for filing derivative lawsuits against the corporation or majorities involved. In most states, such as Texas, there must be some stockholder involvement during the period where oppression occurred with fiduciary duty befalling on majorities. Board members must take action in these cases or face proceedings of their own. These suits are hit and miss, depending solely upon the situation, company and county where the wrongdoings were filed. For most, this should be your secondary remedial relief outlet when buyouts fail.

Legal Counsel Will Help

Never believe you’ll save money or position yourself more advantageously when going into court proceedings alone; some actually do. Legal counsel should be your first stop, even before filing your complaints as there could be ways which are unbeknownst to many where immediate relief could be given. Whenever the unfortunate occurrence of minority oppression riddles you, keep your thoughts, comments and threats to yourself and immediately head towards

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