(702) 384-2070
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    Business Owner and Shareholder Disputes

    Shareholders elect the board of directors in a corporation. Once elected, the directors set the corporation’s bylaws, elect officers and act as supervisors for the corporation. This means that the people who run the business are often elected by majority shareholders. Meanwhile, minority shareholders may not even be able to elect themselves to the board of directors.

    By controlling the board of directors, and, thus, the officers of a corporation, majority shareholders often have outright decision-making power. Some majority shareholders use this power to oppress minority shareholders by:

    • Squeezing-out / freezing-out minority shareholders
    • Refusing to declare dividends
    • Reducing profits and dividends (by increasing spending, etc.)
    • Denying minority shareholders the right to inspect corporate records
    • Diluting minority shareholders’ interest by issuing more stock
    • Moving business assets out of the business
    • Terminating the minority shareholder’s employment with the corporation

    For a free consultation, please call us at (702) 384-2070, or you can email us at mike@foleyoakes.com.