Minority shareholders can easily find themselves the target of business oppression, but unable to assert a claim that the majority has breached its fiduciary duty. That’s usually the case with squeeze out/freeze out schemes that limit the rights of minority investors, but are not technically against the best interests of the company. Before majority malfeasance forces you to sell out to the lowest bidder, come to Schwartz & Kanyock, LLC. Our experienced corporate litigators take decisive steps to pursue appropriate remedies. We capably manage all litigation to protect the value of your labor and investment.
The term squeeze out refers to situations where the majority owners of a business attempt to cut the minority out of management decisions and withhold any significant distribution of the business’ earnings. Most squeeze out schemes follow a similar pattern:
If you are a shareholder employed with a closely held corporation, your employment and your input on the direction of the company are probably your most valuable interests. It’s also unlikely that your shares would have value on the open market or that the majority wants to pay a fair price for them. You can’t sue for breach of fiduciary duty, because nothing the majority has done has hurt the company. Terminated, silenced and squeezed out, you may think you have no recourse. Fortunately, when you’ve run out of ideas, Schwartz & Kanyock, LLC is just getting started.
Freeze out refers business oppression where the majority uses some sort of legal compulsion to force an unwilling minority shareholder to sell out, usually at less than the actual value of the shares. At Schwartz & Kanyock, LLC we’ve dealt with a variety of freeze out schemes:
Minority shareholders are vulnerable to removal schemes that don’t technically violate fiduciary duty. To fight this type of business oppression, you need experienced representation capable of employing proven strategies. To schedule an initial consultation with Schwartz & Kanyock, LLC, call 312-436-1442 or contact us online.