Does a minority shareholder have the right to sue the majority owner of the company?
New Brunswick, Canada
The following excerpt is from Desjardins et autres v. Côté et autres, 2003 NBQB 214 (CanLII):
Corporate law has long recognized the principle of law known as the Foss v. Harbottle rule. This rule provides that actions for wrongs done to a company must be brought by the corporation itself to the exclusion of all others. According to this rule, although a minority shareholder is aware of a wrong done to the company and for which management has failed to take corrective action, usually as a result of it being at fault, he or she does not have the right to sue.
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