The Oklahoma Bar Journal January 2023

ENDNOTES 1. “Close Corporation,” Black’s Law Dictionary , (11th Ed. 2019). 2. M. Thomas Arnold and H. Wayne Cooper, “Protection of Employment Rights of Minority Shareholders of Close Corporations,” Vernon’s Okla. Forms 2d, p. 2 (November 2021). 3. Id. 4. Polk v. Hergert Land & Cattle Co., 5 P.3d 402, 404-05 (Colo. App. 2000). 5. Argo Data Resource Corp. v. Shagrithaya, 380 S.W.3d 249, 265 (Tex. App. Ct. 2012); Litle v. Waters, 18 Del. J. Corp. L. 315, 328 (Del. Ch. 1992); Gee v. Blue Stone Heights Hunting Club Inc. , 604 A.2d 1141, 1145 (Penn. 1992); Brenner v. Berkowitz, 634 A.2d 1019, 1029 (N.J. 1993). 6. McCauley v. Tom McCauley & Son, Inc., 724 P.2d 232, 236 (N.M. 1986). 7. Western v. Acme Tool, Inc., 441 P.2d 959, 962 (Okla. 1968). 8. See M. Thomas Arnold and H. Wayne Cooper, “Protection of Employment Rights of Minority Shareholders of Close Corporations,” Vernon’s Okla. Forms 2d, p. 2 (November 2021); See generally Ala. Code §10-2A-195 (1987); Alaska Stat. §10.06.628 (1989); Ark. Code Ann. §4-27-1430 (1989); Cal. Corp. Code §1800 (1990); Conn. Gen. Stat. §34-267(5) (2017) Ga. Code Ann. §14-2-940 (1989); Idaho Code §30-1-97(A) (2) (1980); Ill. Ann. Stat. Ch. 32, Para. 12.50 (1992); Iowa Code Ann. §490.1430 (1991); Md. Code Ann., Corps. & Ass’ns §3-413 (1993); Mich. Comp. Laws Ann. §450.1489 (1990); Miss. Code Ann. §79-4-14.30 (1992); Minn. Stat. Ann. §302a.751 (1992); Mo. Ann. Stat. §351.494 (1991); N.H. Rev. Stat. Ann. §293-A:98 (1987); N.D. Cent. Code §10-19.1-115 (1985); N.J. Stat. Ann. §14a:12-7; N.M. Stat. Ann. §53-16-16 (1983); N.Y. Bus. Corp. Law §1104-A(A) (1) (1986); Or. Rev. Stat. §60.661 (1992); Pa. Stat. Ann. Tit. 15, §1981 (1992); S.C. Code Ann. §33-14-300 (1990); S.D. Codified Laws Ann. §47-7-34 (1983); Tenn. Code Ann. §48-24-301 (1992); Utah Code Ann. §16-10a-1430(2) (1992); Vt. Stat. Ann. Tit. 11, §2067 (1984); Va. Code Ann. §13.1-747 (1989); Wash. Rev. Code Ann. §23b.14.300 (1992); Wis. Stat. Ann. §180.1430 (1992); Wyo. Stat. §17-16-1430 (1989). 9. Baker v. Commercial Body Builders, Inc., 507 P.2d 387, 395 (Or. 1973). The Supreme Court of Oregon’s list of potential remedies included appointing a receiver to continue the operation of the corporation for the benefit of all shareholders until the oppressive conduct ceases, issuance of an injunction to prohibit continuing acts of oppressive conduct, an order for affirmative relief of a distribution of capital, an order requiring majority stockholders to purchase the minority shares at a price deemed fair and reasonable and an award of damages to minority shareholders for the oppressive conduct. 10. Wilkes v. Springside Nursing Home, Inc., 370 Mass. 842, 353 N.E.2d 657 (1976). 11. Id. 12. Id. at 662-63. 13. Id. 14. See generally Nixon v. Blackwell , 626 A.2d 1366 (Del. 1993). 15. Id. at 1380. 16. Id. 17. Id. 18. Id. 19. Id. at 1381. 20. Ritchie v. Rupe , 443 S.W.3d 856 (Tex. 2014). 21. Id. at 882. 22. Watkins v. Hamm, 419 P.3d 353, 356 (OK Civ App 2017); Woolf v. Universal Fidelity Life Ins. Co., 849 P.2d 1093 (OK Civ App 1992).

23. Principles of Corporation Governance §7.21 (Am. L. Inst. 1994) (further codification of these principles are anticipated due to the ALI’s ongoing work regarding the Restatement of the Law, Corporate Governance, Tentative Draft No. 1, 2022). 24. Id. 25. Oklahoma Supreme Court frequently relies on the ALI doctrinal restatements of law for guidance in applying Oklahoma law. See e.g., Schovanec v. Archdiocese of Oklahoma City, 188 P.3d 158, 2008 OK 70; Panama Processes, S.A. v. Cities Service Co., 796 P.2d 276, 1990 OK 66. 26. 667 P.2d 465 (Okla. 1983). 27. Id. 28. Id. at 471-72. 29. 18 O.S. §953(D). 30. Sutter v. Sutter Ranching Corp., 14 P.3d 58, 62, n.18 (Okla. 2000). 31. Whether acts of oppression equate to a breach of fiduciary duty would necessarily require a subjective case-by-case analysis given applicable law on fiduciary duty. See Lowrance v. Patton, 710 P.2d 108, 111 (Okla. 1985). 32. For a more in-depth understanding of the issues related to a “freeze out,” one may wish to consult the following additional sources: M. Thomas Arnold and H. Wayne Cooper, “Protection of Employment Rights of Minority Shareholders of Close Corporations,” Vernon’s Okla. Forms 2d, p. 2 (November 2021); F. Hodge O’Neal and Robert B. Thompson, O’Neal and Thompson’s Oppression of Minority Shareholders and LLC Members §1:2 (Rev. 2d ed. 2005); Douglas K. Moll, “Shareholder Oppression in Texas Close Corporations: Majority Rule (Still) Isn’t What it Used to Be,” 9 Hous. Bus. Tax L.J. 33 (2004); Daniel S. Leinberger and Douglas K. Moll, Oppression in LLCs, 2020 LLC Institute.

JANUARY 2023 | 17

THE OKLAHOMA BAR JOURNAL