A shareholder who owns more than 50% of the shares of a company generally has the equity and decision-making authority to overrule the shareholder(s) with less than 50% shares. This may lead to shareholder oppression by the majority shareholder(s) against the minority shareholder(s). Fortunately, there are laws that seek to address shareholder oppression and provide some remedy for the minority shareholders.
What Are the Most Common Shareholder Disputes?
Some of the common disputes between minority and majority shareholders include but are not limited to, the following:
- Breach of the shareholder agreement
- Breach of fiduciary duty
- Malicious suppression of payment of dividends
- Excessive payments of dividends to majority shareholders
- Excessive salaries to majority shareholders and family members
- Improper personal loans to majority shareholders
- Disagreements concerning the present or proposed future direction that the business is seen to be taking
How Can Houston TX Business Attorneys Help You?
If you are involved in a shareholder dispute, it is important to contact a competent business attorney or business litigation law firm to evaluate your case. Shareholder disputes are often complex and contentious and require the guidance of skilled attorneys.
Contact Anunobi Law PLLC for More Information
The attorneys at Anunobi Law can help you evaluate your case and assert your rights. Call 832-538-0833 or complete the contact form.
