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.
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.
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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