When the shareholders of a corporation disagree about the management or operations of the business, the controlling shareholders occasionally take steps designed to convince the minority shareholders to sell their stock. If the majority owners use oppressive or coercive measures to force the sale, or if they attempt to compel a sale at less than fair value, the minority shareholders may have claims against the majority owners.
Minority shareholders have important rights to examine the books and records of the corporation to ensure that both parties to the sale have access to full information about the value of the company. If the majority owners refuse access to the books and records, or if the majority shareholders misrepresent the value of the stock, the minority shareholders may have a cause of action against the majority shareholders.
What you Need to Know
