Archive for June, 2008
While minority shareholders have considerable rights under New Jersey law, including the right to be free from oppression, this does not mean that majority shareholders may be bullied by minority shareholders who consistently oversteps their bounds.
Business owners may recognize the minority shareholder who (1) knows little about the business, yet insists he knows more than those who actually do the work and have the expertise; (2) attempts to dictate the way the business is run; or (3) demands to see every scrap of paper generated by the business operation.
Of course, minority shareholders should not be kept completely in the dark, and should not be treated unfairly. However, minority shareholders’ rights clearly have limits, which will largely be dictated by the circumstances of each case.