Many businesses are family-owned corporations in which ownership percentages are split among relatives. When intrafamily disputes arise about issues either inside or outside the business, it can threaten the orderly operation of the business and lead to a majority of family members ganging up against one shareholder — usually referred to as the minority shareholder (a person who owns 50 percent or less of the corporation).
Generally, if the minority shareholder believes that the majority shareholder(s) have acted oppressively or unfairly toward him, he may bring an oppressed shareholder action under the New Jersey Business Corporation Act, N.J.S.A. 14A:12-7(1)(c) — a.k.a. the “Oppressed Minority Shareholder Statute” — seeking, among other things, a buyout of his stock interest by the majority.
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