Shareholder Oppression Attorneys
Hopkins Centrich PLLC provides cutting edge, high quality, creative legal solutions for minority shareholders in Texas Closely Held Corporations when their rights have been abused by the majority owners.
Our attorneys and staff have decades of experience in virtually every aspect of business law through The Woodlands and Texas. We have designed and incorporated businesses, managed their every legal concern, engaged in litigation on their behalf, aided with mergers and acquisitions, managed mergers, acquisitions, and sales.
Hopkins Centrich knows Texas business law. We are uniquely positioned to help shareholders when they have amble cause to believe their rights are being violated. When we work with a client, our sole focus is on them. We take advantage of everything technology has to offer in order to optimize how we work. That gives us more time to spend with you, more time to understand the issues, more time to negotiate and prepare for trial.
We get that no one wants to contact a law firm unless they feel they absolutely have to. When they do, it almost always means that ‘things have reached a head.’ The attorneys and staff of Hopkins Centrich understand what you are going through. We will make the process understandable; you will know what is happening with your case every step of the way, you will never have to track us down for answers.
What We Do
It’s an unfortunate fact of business life that some majority owners of closely held companies do not treat their minority shareholders fairly – sometimes unintentionally, sometimes with malice. In either scenario the shareholder is undoubtedly harmed and left wondering if there are any remedies.
Some of the ways shareholders in closely held companies can be oppressed are:
Freezing out: Majority shareholders can exclude minority shareholders from participating in important decision-making processes or deny them access to company information even where the minority shareholder has a vested interest in the decision.
Diversion of opportunities: Majority shareholders can divert business opportunities and benefits to themselves or related entities, leaving minority shareholders at a disadvantage.
Unfair dilution of ownership: Majority shareholders may issue additional shares to dilute the ownership percentage and voting power of minority shareholders without their consent.
Dividend and profit denial: Majority shareholders can intentionally withhold or reduce dividends and profits, depriving minority shareholders of their fair share of company earnings.
Breach of fiduciary duty: Majority shareholders may fail to act in the best interest of the company and its shareholders, using their position for personal gain or to the detriment of minority shareholders.
Unfair related-party transactions: Majority shareholders can engage in transactions with related entities at unfair prices or terms, causing financial harm to the company and minority shareholders.
Oppressive agreements or restrictions: Shareholders' agreements or company bylaws may contain provisions that unfairly restrict the rights and powers of minority shareholders.
Exclusion from profits and benefits: Majority shareholders may distribute profits or benefits disproportionately, favoring themselves over minority shareholders and not providing them with a fair share.
Misuse of corporate assets: Majority shareholders may use company assets for personal gain, taking advantage of their control and disadvantaging minority shareholders.
Denial of access to records: Majority shareholders can deny minority shareholders access to company records, hindering their ability to monitor the company's activities and make informed decisions.
Oppressive changes in company structure: Majority shareholders may alter the company's structure, such as merging or converting it, without considering the interests of minority shareholders.
Squeeze-out or buyout maneuver: Majority shareholders may force minority shareholders to sell their shares at an unfair price or under oppressive conditions, effectively pushing them out of the company.
Exploitation of shareholder loans: Majority shareholders may manipulate or abuse shareholder loans, using them as a means of control or to extract financial advantage from minority shareholders.
What to Do If You Think Your Majority Owners Aren’t Being Fair
First, do not believe anything you read online, or listen to someone who tells you that the Texas Supreme Court did away with Shareholder Oppression lawsuits. The Court merely limited some of the basis for bringing a Shareholder Oppression action. There are still many avenues to relief still available, particularly where the majority shareholders have made decisions that are not In the best interests of the business.
Don’t wait. If you think your shareholder rights have been trampled on don’t hesitate to call. Don’t hope that things change, don’t let a matter fester, don’t try to solve the problem yourself through emails and letters and not-so-calm-conversations. Contact us. The earlier you so, the better, there are deadlines for every legal action.The longer you wait, The longer you wait, the fewer your legal options.
How We Work
Hopkins Centrich is a team with a deep bench. All our attorneys have extensive litigation experience which they fully use when necessary.
Hopkins Centrich’s attorneys also have ‘big firm’ backgrounds. They formed our firm with the goal of retaining the best and most talented lawyers who would provide a greater and more personal experience for our clients.
We do this by using technology to its fullest. We utilize cutting-edge business processes and methodologies to assure that we can continue to deliver the highest quality legal services to our clients. This, in turn, allows us to respond promptly and efficiently to client needs, exceed project requirements, operate effortlessly with narrow timeframes, and develop innovative yet flexible legal solutions at competitive fees.
We are creative. We are agile. We quickly adapt to rapidly changing circumstances, including changes in the law.
Hopkins Centrich is dedicated to upholding the rights of minority shareholders. If you feel you are not being treated right and you are invested in a closely held company – money, time, labor, experience, intellectual property, etc. – please call us as soon as possible.
Our vision statement may sum it up best. We deliver highly skilled, ethical and aggressive legal representation to every client by:
- Responding promptly to our clients’ needs.
- Anticipating business and legal trends that may affect our clients.
- Managing our clients’ matters in an efficient, caring, and proactive manner.
- Communicating regularly and clearly with our clients.
