A Lake George resort must dissolve as a corporation because majority shareholders looted company assets and took oppressive actions toward minority shareholders, such as trying to force them out, an appeals court has ruled.

An Appellate Division, Third Department, panel held that Twin Bay Village Inc., a lakeside summer resort operating as a closely held corporation, was correctly ordered to dissolve in 2016 by Warren County Supreme Court Justice Robert Muller, and that Muller was “fully justified” in setting aside certain corporate actions taken in past years by majority shareholders.

Justice Robert Rose, writing for a unanimous panel, directed the bulk of his opinion at a “merits” analysis of whether certain majority shareholders engaged in actions toward minority shareholders such that judicial dissolution could rightfully be ordered under state Business Corporation Law § 1104-a.