Smith,Jones,and Brown incorporated XYZ Ltd.The three were sole shareholders,directors,officers,and employees.Jones and Brown disliked working with Smith.They knew he was good for the business,but they disliked his personality and politics.After a year,Jones and Brown,as directors,removed Smith as an officer and employee and raised their own salaries as employees.They then voted Smith out as a director at the next shareholders' meeting.Which one of the following provisions would aid Smith?

Question

Quizplus · Accepted Answer

Relief-from-oppression provisions provide protection to minority shareholders in situations where the majority shareholders are abusing their power and unfairly prejudicing the minority shareholders. In this situation, Smith was removed as an officer, employee, and director by the majority shareholders who disliked him personally. Therefore, Smith may be able to seek relief under oppression provisions.

Smith,Jones,and Brown Incorporated XYZ Ltd