Archive for December, 2007
When a minority shareholder has a dispute with his or her business partner, the aggrieved shareholder often intuitively knows that there must be some legal protection for someone in his situation. He may not know the details – that there is a specific statute that provides protection for someone in just his position – but common sense may lead him to at least suspect that a competent lawyer might be able to obtain some relief for him.
The case of two 50% shareholders is a different animal altogether, at least with respect to a business owner’s expectations. Often a shareholder who owns half the company has far less than half the power, simply as a result of the way the company has historically operated. However, fifty percent shareholders often believe they have fewer rights and remedies than do minority shareholders because of the assumption that the law would not favor them over a co-equal shareholder. That assumption is often incorrect.