Minority shareholders in small corporations can be at a terrible disadvantage should the majority choose to engage in underhanded practices.  Unlike stock traded on Wall Street, there is no market readily available to facilitate the sale of stock owned by such a minority shareholder.  Plus, the stock of a minority shareholder is not attractive to prospective purchasers who may come into a contentious business setting knowing that their minority status essentially mutes their voice at the shareholder table.  Majority shareholders will at time engage in shareholder oppression which plays upon the disparity in power by employing “squeeze out” tactics.  These tactics are designed to constructively oust a shareholder and force the discounted sale of stock to the majority.  Shareholder oppression can also occur when the majority pays themselves exorbitant salaries which deplete the business of money and thereby prevents the business from paying dividends.

If you are think that you might be the victim of shareholder oppression or if a business colleague is accusing you of such, contact the Law Office of Ryan C. Solis to schedule a consultation to discuss legal options regarding shareholder oppression.