Shareholder Disputes: November 2014 Archives

What Duties Does a Minority Shareholder/Employee Owe Following a Wrongful "Freeze Out"?

As discussed in a previous blog post, a well-drafted shareholder or employee agreement is extremely important to clarify the rights and duties of an employee who is also a minority shareholder of a Massachusetts close corporation. The need for a clear agreement is especially important if there is a dispute concerning the termination of a minority shareholder/employee. Where no agreement exists, or if the applicable agreement does not entirely govern the rights and duties of the parties in a particular situation, the obligations are governed by their fiduciary duties to each other, which may be unclear depending on the circumstances.

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