Practice Area

Minority Shareholder Oppression

Texas State Court

Situation — How This Comes Up

The majority shareholders are freezing me out of the business and refusing to pay any distributions.

What You Need to Know First

Texas courts recognize minority shareholder oppression as a basis for judicial relief, including forced buyout, when the majority uses its control to deprive the minority of the reasonable expectations underlying their investment.

Full Analysis

Minority shareholder oppression in Texas closely-held corporations is addressed through common law fiduciary duty claims and Texas BOC dissolution provisions. Courts have broad equitable powers to fashion appropriate relief.

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