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In California, Majority Shareholders and Directors Cannot Use Their Power to Control the Corporation for Their Own Advantage and to the Detriment of the Corporation or the Minority Shareholders
March 6, 2011 Leave a Comment
By Gerald P. (“Jerry”) Burleson, Esq., Member of the California Bar Directors and majority shareholders are fiduciaries who hold their powers to control the corporation in trust. Where a transaction between a majority shareholder or a director and the corporation is challenged, a court will set it aside unless the interested majority shareholder or director [...]
In California, Minority Shareholders Can Sue Majority Shareholders Who Have Abused their Power to Control the Corporation
March 6, 2011 Leave a Comment
By Gerald P. (“Jerry”) Burleson, Esq., Member of the California Bar The Supreme Court of California announced a fundamental rule of fairness that must be respected in all situations where majority shareholders exercise their power to control the corporation: “Any use to which they put the corporation or their power to control the corporation must [...]
