65.2k views
5 votes
How can minority shareholders petition for dissolution

1 Answer

4 votes

Final answer:

Minority shareholders can petition for dissolution by filing a lawsuit in court, substantiating their claims according to state statutes, and focusing on issues like oppressive actions by the majority or mismanagement of the company.

Step-by-step explanation:

Minority shareholders may petition for the dissolution of a corporation if they feel their rights are being compromised or the company is being mismanaged. Specifically, shareholders might claim there is "oppressive" conduct by the majority, the company's assets are being misused, or the company is no longer able to carry out its business. To petition for dissolution, minority shareholders typically need to file a lawsuit in the appropriate court, presenting evidence to support their claims and following the specific statutes and procedures set by state law. The court may then order dissolution if it finds the petitioners' claims are valid.

User Stackminu
by
8.4k points