This past summer the Texas Supreme Court in Richie v. Rupe, 2014 Tex. LEXIS 500 (Tex. 2014), all but eliminated shareholder oppression as a cause of action available to minority shareholders in closely held corporations being treated unfairly by the majority. The Court held that there is no common law cause of action for shareholder oppression. Rather, it is simply one of several statutory grounds for a court to impose a receivership upon the operation of a corporation.
Unfortunately, by the time a corporation reaches the point of receivership it is usually a sinking ship. This is not much help to shareholders who are being taken advantage of by those in control of profitable...
