Article

Corporate Dissolution and Shareholders' Reasonable Expectations

Author: Robert B. Thompson (Georgetown University Law Center)

Abstract

Within the last decade the highest appellate courts in a half dozen states have adopted the reasonable expectations standard as the basis for determining whether involuntary dissolution, a court-ordered buyout of a shareholder, or some other relief is appropriate in a corporation wracked with dissension. Lower appellate courts in other states have also adopted this approach, and two states include a reasonable expectation standard in their statutes. This article analyzes the historical development of the reasonable expectations standard and the implications for its continued use in resolving conflicts within corporations.

Keywords: Close corporations, Stockholders

How to Cite: Thompson, R. B. (1988) “Corporate Dissolution and Shareholders' Reasonable Expectations”, Washington University Law Review. 66(2).