Shareholder oppression—also known as minority shareholder oppression, squeeze out, or freeze out—is a general term for a claim or cause of action that may be made by a minority shareholder—a shareholder who owns less than a controlling percentage of the company—and is based on the alleged unfair or oppressive treatment of the minority shareholder.

Minority shareholder oppression claims often arise in closely-held corporations—corporations that are not publicly traded; in which a relatively small number of people own most or all of the shares; and in which the shareholders are often family members or people who know each other.

Those in control of a closely held corporation may use various squeeze-out or freeze-out tactics to deprive minority shareholders of benefits; to misappropriate those benefits for themselves; or to induce minority shareholders to relinquish their ownership for less than it is otherwise worth.

The types of conduct most commonly associated with such tactics include:

• denial of access to corporate books and records;

• withholding payment of, or declining to declare, dividends;

• termination of a minority shareholder's employment;

• misapplication of corporate funds and diversion of corporate opportunities for personal purposes; and

• manipulation of stock values.

In West Virginia (WV), shareholder oppression occurs when those in control of a closely-held corporation engage in unfair or oppressive conduct towards minority shareholders. This can include denying access to corporate records, withholding dividends, terminating employment, misusing corporate funds, and manipulating stock values. WV does not have a specific statute that addresses shareholder oppression, but minority shareholders can still seek relief under common law and provisions within the West Virginia Code, such as those related to fiduciary duties and fair dealing. Remedies may include forcing the majority to buy out the minority's shares at a fair price, awarding damages, or in some cases, dissolving the corporation. It is important for minority shareholders who believe they are being oppressed to consult with an attorney to explore their legal options and protect their rights within the corporation.