Guy Is Hot Java Company's Majority Shareholder

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Examlex · Accepted Answer

The Answer is Yes.A single shareholder-or a few share?hold?ers acting together-who owns enough stock to exer?cise de facto control over a cor?poration owes the cor?poration and its minority share?holders a fidu?ciary duty when transfer?ring those shares.A breach of this fiduciary duty by those who control a closely held corporation can constitute what is known as oppressive conduct.A breach of this duty may also occur if a majority shareholder attempts to exclude minority shareholders from receiving certain benefits from participating in the firm.Thus,for example,refusing to perform a valuation of the company,or denying the minority shareholders access to corporate information to which they would otherwise entitled,would constitute a violation of this duty.

Guy Is Hot Java Company's Majority Shareholder

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