Shareholder Oppression
/ˈʃɛrˌhoʊldər əˈprɛʃən/
Definitions
- (n.) Conduct by majority shareholders that unfairly prejudices minority shareholders' rights or interests in a corporation.
The minority shareholders alleged shareholder oppression when excluded from key decisions.
- (n.) A ground for legal relief in corporate law where courts may intervene to protect minority shareholders against abusive acts.
The court ruled in favor of the plaintiff due to demonstrated shareholder oppression.
Forms
- shareholder oppression
Related terms
See also
Commentary
Shareholder oppression often arises in closely held corporations where majority shareholders control decisions; remedying it requires balancing protection for minority stakeholders with respect for majority rule.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.