Shareholder Oppression: Will You "Know It When You See It?"

A US Supreme Court Justice once famously stated that, while he might not be able to intelligently define what qualifies as obscene or pornographic, "I know it when I see it."¹ Many advisors and owners say the same thing about "shareholder oppression." They might not know the exact definition of "shareholder oppression," but they claim to "know it when they see it." But do they?

Oppressive conduct is defined as "a continuing course of conduct or a significant action or series of actions that substantially interferes with the interests of the shareholder as a shareholder." MCL 450.1489(3).² That's a mouthful, for sure, but it leads to a key question: "What are a 'shareholder's interests as a shareholder?'" To determine if there has been any interference with a shareholder's interests, you first must understand what those interests are.