Shareholder Oppression in Texas Close Corporations: Majority Rule (Still) Isn't What It Used To Be

29 Pages Posted: 4 Jul 2008 Last revised: 24 Aug 2010

See all articles by Douglas K. Moll

Douglas K. Moll

University of Houston Law Center

Date Written: July 3, 2008

Abstract

The doctrine of shareholder oppression protects the close corporation minority stockholder from the improper exercise of majority control. Although the Texas Supreme Court has not explicitly recognized the doctrine, appellate courts in Texas and in other jurisdictions have recognized and applied it in numerous decisions. Moreover, there is a statutory basis for the doctrine in Texas, as shareholders are given the right to petition for receivership, liquidation, or less harsh remedy on the grounds of oppressive conduct by directors or those in control. Because the shareholder oppression doctrine potentially alters a number of fundamental legal principles, it is critically important to be familiar with the doctrine's operation in close corporation disputes.

Keywords: oppression, close corporation, closely held, shareholder oppression, Texas

Suggested Citation

Moll, Douglas, Shareholder Oppression in Texas Close Corporations: Majority Rule (Still) Isn't What It Used To Be (July 3, 2008). Houston Business and Tax Law Journal, Vol. 9, p. 33, 2008, Texas Journal of Business Law, Vol. 43, p. 21, 2009, U of Houston Law Center No. 2008-A-21, Available at SSRN: https://ssrn.com/abstract=1155078

Douglas Moll (Contact Author)

University of Houston Law Center ( email )

100 Law Center
Bldg. TU2
Houston, TX 77204-6060
United States
713-743-2172 (Phone)
713-743-2238 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
398
Abstract Views
1,883
rank
82,213
PlumX Metrics