West Babylon, NY asked in Business Formation and Business Law for New York

Q: Majority shareholder sues minor shareholder and the company- can minor shareholder accept service on behalf of company?

Plaintiff owns 75% of Company A. Defendant owns 15% of Company A. (So a third party owns the remaining 10%.) Plaintiff sues both Defendant AND Company A. The lawsuit seeks to dissolve Company A.

Two questions:

Defendant can obviously accept service on behalf of themselves, but can they accept service on behalf on Company A when the majority owner of Company A is the one suing Company A?

What are the defenses of the Defendant, as a minority owner, to prevent an action to dissolve the company by the majority owner.

1 Lawyer Answer
Michael David Siegel
Michael David Siegel
  • New York, NY
  • Licensed in New York

A: A shareholder, just by being a shareholder, cannot accept service. Service must be on an officer or director, or the registered agent. A minority shareholder can fight the dissolution, or demand a buyout based on the value of the corporation as determined by a court. The procedure is in the business corporation law.

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