Although, the statutory remedy for minority oppression in New York is dissolution of the company, Courts often use it as a remedy of last resort. That is because the dissolution of a company may result in innocent employees losing their jobs, as well as the destruction of the value of the business.
If the company is viable or profitable, the Court will generally use its equitable powers and order one party to buy out the others’ interests in the company. That ordered buy out will be based upon the "fair value" interest in the company.
Scott Unger is a Shareholder in Stark & Stark’s Lawrenceville, New Jersey office concentrating in Shareholder & Partner Dispute Litigation. For questions, or additional information, please contact Mr. Unger.