Differing Views Regarding The Definition Of Oppression

Current Issues in Closely Held Businesses Series: Part 3

The same conduct that can result in a breach of fiduciary duty of those in control to a minority shareholder will often support a claim for oppression. See Part 2 of the Current Issues in Closely Held Businesses Series, Termination of Employment Versus Breach of Duty, for a discussion of a breach of fiduciary duty.

Shareholder oppression has been recognized as a statutory action since an early version of the Illinois Business Corporation Act in 1933. The Illinois statute was used to develop oppression as the basis for involuntary dissolution of the corporation contained in versions of the Model Business Corporation Act (MBCA).