Texas Supreme Nixes Minority Shareholder Oppression Claims - FOX 54 WZDX – Huntsville News, Weather and Sports

Texas Supreme Nixes Minority Shareholder Oppression Claims

Posted:

This article was originally distributed via PRWeb. PRWeb, WorldNow and this Site make no warranties or representations in connection therewith.

SOURCE:

Hawkins Parnell Thackston & Young LLP partner represented defendants in case where Court refuses to recognize court-created claim for oppression and severely limits the types of conduct that will qualify as oppressive for statutory claims.

(PRWEB) June 22, 2014

Today, after more than 50 years of silence on shareholder oppression claims, the Texas Supreme Court issued a 54 page opinion rejecting such claims except to the extent they seek the limited statutory remedy of a rehabilitative receivership.

In Ritchie v. Rupe, the Court expressly rejected the existence of a non-statutory, court-created claim for oppression in which shareholders claiming to be oppressed can force the corporation to buy the shareholders stock. This decision aligns Texas with Delaware, which does not recognize shareholder oppression claims. The decision also makes it more difficult for a minority shareholder seeking the statutory remedy of a rehabilitative receivership to establish that the majority shareholders have committed oppression.

Shareholder oppression claims have been increasing in recent years, and Texas attorneys and closely-held corporations have been closely monitoring this case. Robert B. Gilbreath, a partner in the law firm Hawkins Parnell Thackston & Young, LLP represented the defendants in Ritchie v. Rupe, briefing and arguing the case in the Texas Supreme Court.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/06/prweb11963041.htm

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

Powered by WorldNow