A minority shareholder who is a victim of shareholder oppression by the majority shareholders, officers and directors may be entitled to have their stock purchased for “fair value.”. N.J.S.A. 14A:12:7(8) provides:
Upon motion of the corporation or any shareholder who is a party to the proceeding, the court may order the sale of all shares of the corporation’s stock held by any other shareholder who is a party to the proceeding to either the corporation or the moving shareholder or shareholders, whichever is specified in the motion, if the court determines in its discretion that such an order would be fair and equitable to all parties under all of the circumstances of the case.
N.J.S.A. 14A:12-7(8). Pursuant to N.J.S.A. 14A:12-7(1)(c), N.J.S.A. 14A:12-7(8), along with the Court’s common law powers a buy-out of the minority’s stock for “fair value” may be Ordered.
If you believe you are an oppressed minority shareholder and would like to discuss your situation in more detail, please contact me in my Lawrenceville, New Jersey office.