Hodge O'Neal, CLOSE CORPORATIONS
: LAW AND PRACTICE (1956).
The paper will examine the use of the oppression action by minority shareholders in close corporations
, minority shareholders in public corporations, contract creditors, (7) involuntary creditors, employees, and the corporation itself.
1992) (holding that a voting agreement among all shareholders was valid even though the company did not fulfill statutory requirements to be a statutory "close corporation
," and the statute authorized such an arrangement for "close corporations
"); Zion v.
The Fund provides fund to small and medium businesses registered as close corporations
Combined with the unusual Texas provision (Rule of Procedure 202) regarding a potential litigant's right to take pre-suit deposition discovery, the shareholder right of inspection remains an important tool for utilization by minority shareholders in a close corporation
as well as for shareholders in widely-held corporate entities.
[W]e hold that stockholders in the close corporation
For instance, minority shareholders in close corporations
Company registrations, mainly close corporations
, increased by 11%.
are often formed among family members or longtime friends and business partners, the kind of intimate relations that all too frequently carry simmering jealousies, sibling rivalries, personal grievances, real or imagined, all of which invariably become bound in subtle (or not so subtle) ways within the business's day-to-day operations and governance.
is to prevent outsiders from purchasing shares and
The same freeze-out problems facing minority shareholders in close corporations
have caused problems for LLC members owning minority interests.
(47.) The Statutory Close Corporation
Supplement to the MBCA, a model law that governed close corporations
, was discontinued by the Committee on Corporate Laws upon the publication of the fourth edition of the MBCA.
(2.) "'[S]ome close corporations
have vast assets and worldwide operations.'" Jesse H.
SHAREHOLDERS' AGREEMENTS IN CLOSE CORPORATIONS
AND THEIR ENFORCEMENT IN THE UNITED STATES OF AMERICA*
In terms of sheer volume, close corporations
dominate the corporate world.