Shareholders are entitled to have their reasonable expectations upheld
Minority shareholders can bring oppression claims if they are not treated fairly. These claims are not about strict legal rights but about what is fair in the circumstances, which is measured by the reasonable expectations of the shareholders.
Here are some examples of oppressive conduct by dominant shareholders:
- Unequal or unfair distribution of profits
- Failing to provide financial statements, or audited financial statements
- Failing to hold shareholders’ meetings
- Treating the company as if it were owned exclusively by the majority
- Payment of excessive management fees
- Preferring a dominant shareholder’s interests over the interests of the company
- Taking unauthorized or secret benefits
We advise on these kinds of claims, as well as:
- Rights of dissent, plans of arrangement, and “fair value” of shares.