Closely-held companies are especially dependent on productive and harmonious relationships among their shareholders. When those relationships break down, it can be very difficult to resolve the resulting conflicts. In some instances, disagreements arise among the shareholders. In others they arise between the company and the shareholders. Since many Certified General Accountants advise closely-held companies—and often serve as their sole advisers in these disputes—it is imperative that they have a thorough understanding of the legal options for resolving them. These options include a shareholders’ agreement, shareholder dissent rights, a derivative action and dissolution of the company. The most effective, however, is the “oppression” remedy.

type Shareholder Oppression