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So, how can I defend Chip and Dale best, or even negotiate, in case Jennifer argues that: In this case, Chip and Dale are oppressing
So, how can I defend Chip and Dale best, or even negotiate, in case Jennifer argues that:
- In this case, Chip and Dale are oppressing Jennifer who is a minority shareholder- Jennifer`s investment is the reason the cooperation is successful as it made the purchase of raw materials possible. According to the agreement, Jennifer would get 10% of the profit that the business would earn. However, as the business becomes successful, Chip and Dale keep increasing their salaries which means there is lesser amount left in profits. This also means that Jennifer will earn lesser the more Chip and Dale increase their salaries. Clearly, Jennifer is being oppressed by Chip and Dale who are the majority shareholders and have more power to make financial decisions of the business.
- In the oppression remedy claim, Jennifer can argue that:
- Without her investment, Chip and Dale`s construction company would not have run and become successful and therefore, she is a key part of the corporation`s success. Her interests should therefore be taken into consideration.
- She has a 20% stake in the company and should thus be included in financial decisions.
- Since the company is becoming more successful and Chip and Dale keep increasing their salaries, they should also raise Jennifer`s profit earnings from 10%.
- In the oppression remedy, Jennifer can ask the court to do one of the following:
- Ask Chip and Dale to stop the oppressive action of increasing their salaries.
- Order Chip and Dale to purchase her shares at a considerable price.
- Dissolve the corporation and liquidate the assets.
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