Business Litigation
May 15, 2026
Dilution of Shares: When Is It Improper?
Improper shareholder dilution occurs when controlling owners issue new equity to reduce a minority shareholder’s ownership, voting power, or economic rights without a legitimate business purpose. Texas law allows minority shareholders to challenge dilutive transactions involving fiduciary breaches, preemptive rights violations, shareholder oppression, and self-dealing conduct.


