Close quarters create conflicts. Just ask anyone operating a closely held company. No matter how well individuals work together, personal interests often influence company decisions that not everyone agrees with. Unfortunately, such disagreements commonly lead to actions that, intentional or otherwise, amount to shareholder oppression. In many cases, however, these actions are preventable.
Previously, we've written about some of the remedies available to shareholder oppression claimants. Among those we mentioned is the judge's ability to dissolve the company, or at least the minority's interest in the company. While these actions can effectively end the oppressive conduct, the question then becomes how will each party's shares be valued? When shareholder oppression is involved, these valuations can become extremely tricky.