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

The relief-from-oppression provisions would aid Smith in this situation, as he is being unfairly treated by the other two directors who are also shareholders. These provisions allow a minority shareholder to apply to the court for relief if they believe they are being treated oppressively or unfairly by the majority shareholders or directors.

Smith, Jones, and Brown Incorporated XYZ Ltd