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Majority shareholders cannot sell shares and hand over control of a closely held corporation to an outsider who will mismanage or loot the corporation, a Pennsylvania judge held. The case further defines the fiduciary duty majority shareholders, who are officers and directors of a closely held corporation, owe to minority shareholders when bargaining for the sale of only their shares of the company at a premium price.
August 08, 2000 at 12:00 AM
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The original version of this story was published on Law.Com
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