Legal Question in Business Law in California

Looks like a fairly typical case of oppression of a minority stockholder. Perhaps the other owners would respond in some favorable ways to a letter or two from an attorney representing you and seeking information and making demands. Your rights include inspection of the books, the right to attend annual meetings and vote for directors, and equal distributions (per share) of profits. Majority shareholders cannot overcompensate themselves, as this is a form of taking an excessive dividend.

So, maybe the situation can be brought more nearly under control without the necessity of a shareholder lawsuit, by writing letters, reviewing the books, and pointing out the unfair or illegal practices.

If a lawsuit were necessary, I think there are sufficient favorable statutes and precedents that you would probably prevail. Majority shareholders have some rights and some discretion, but there are limits.

If you would like a more detailed (free) review, please contact me directly. Although I work from home in the San Francisco Bay Area, I do have clients and projects all over the state including a couple of matters in Los Angeles and Orange County, and I don't charge travel time.