Just when it looked like all was lost for minority shareholders of closely held Texas corporations after the Texas Supreme Court eliminated shareholder oppression as a cause of action, along came the Court’s decision of Sneed v. Webre, 465 S.W.3d 169 (Tex. 2015). In this fascinating decision, the Court found that shareholders of TX closely
Fiduciary Law
Fiduciary Duties Owed by Members of Texas Limited Liability Companies
By Dane Patrick on
Posted in Business, Fiduciary Law
The Texas Supreme Court has made it clear in a recent opinion that majority shareholders do not owe formal fiduciary duties to minority shareholders, even in closely held corporations. Cardiac Perfusion Services, Inc. v. Hughes, 436 S.W.3d 790 (Tex. 2014). However, a recent Texas appellate court held that managing members of a limited liability…
Texas Corporate Fiduciary Duties Alive and Well
By Dane Patrick on
Posted in Business, Fiduciary Law
The last post discussed the Texas Supreme Court’s recent decision in Ritchie v. Rupe eliminating shareholder oppression as a cause of action in Texas. However, all is not lost for minority owners in small corporations or limited liability companies who are treated unfairly. In fact, the same court made it clear that board of director…
Texas Supreme Court to Address Shareholder Oppression
By Dane Patrick on
Posted in Business, Fiduciary Law
It is no secret that a majority of Texas corporations are privately held companies controlled by a small number of shareholders. The controlling shareholders in these corporations may have a duty not to oppress the economic interests of the shareholders holding a minority interest. There are currently three cases pending before the Texas Supreme Court …