Robyn and his eight friends bought shares in company XYZ.Since it was their first time investing in a company,they became minority shareholders and did not closely follow the actions of that company.Three months later,they each received a letter stating the company planned to eliminate all minority shareholders as of that day.Robyn believes they are entitled to some form of remedy for XYZ's actions.Which of the following is the best course of action for Robyn and his friends?

Question

Quizplus · Accepted Answer

Filing a class action claim for an oppression remedy is the best course of action for Robyn and his friends. This type of claim is appropriate for situations where minority shareholders are being unfairly treated or oppressed by majority shareholders. It allows shareholders to band together and seek a remedy as a group, rather than each individual having to take legal action. Option A is not advisable because shareholders have certain rights, and companies cannot simply eliminate minority shareholders without notice or compensation. Option B is not appropriate because suing for the total value of shares is not a realistic remedy, and shareholders would have to prove that the company engaged in some type of illegal or fraudulent conduct. Option C may be an option, but it is time-consuming and expensive for individuals to take derivative action. Option D is also not advisable because asking for half of their share value is not a specific enough request and it is unlikely that the company would agree to it without legal action being taken.

Robyn and His Eight Friends Bought Shares in Company XYZ