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Oppressed Minority Shareholders Should Be Afforded Protection

By Stark & Stark

Stark & Stark Litigation Shareholder, Scott I. Unger, authored the article, Oppressed Minority Shareholders Should Be Afforded Protection: An argument for a revision of the Limited Liability Act, for the February 1, 2010 edition of the New Jersey Law Journal.

The article discusses the fact that the minority oppression statute, which prohibits majority shareholders in closely held corporations from oppressing minority shareholders, was not specifically incorporated in the statutes governing limited liability corporations. Mr. Unger states that the business section of the New Jersey State Bar Association is considering recommending changes to statutes governing limited liability corporations, one major change would be to specifically state that minority members in an limited liability corporation may sue if they are oppressed. Mr. Unger goes on to discuss the importance of the incorporation of those protections and believes that Court's of Equity should utilize and apply the minority oppression statute to limited liability companies.
 

You can read the full article online here. (PDF)

Full post as published by New Jersey Law Blog on February 02, 2010 (boomark / email).