Opinion ID: 1153554
Heading Depth: 1
Heading Rank: 8

Heading: Remedies available for oppressive conduct as an alternative to dissolution.

Text: We have already held in Browning, supra, 248 Or. at p. 582, 434 P.2d 339, that in a suit under ORS 57.595 for oppressive conduct consisting of a squeeze out or freeze out in a close corporation the courts are not limited to the remedy of dissolution, but may, as an alternative, consider other appropriate equitable relief. Depending upon the facts of the case and the nature of the problem involved, various alternative remedies may be appropriate. Among those suggested are the following: (a) The entry of an order requiring dissolution of the corporation at a specified future date, to become effective only in the event that the stockholders fail to resolve their differences prior to that date; [21] (b) The appointment of a receiver, not for the purposes of dissolution, but to continue the operation of the corporation for the benefit of all the stockholders, both majority and minority, until differences are resolved or oppressive conduct ceases; [22] (c) The appointment of a special fiscal agent to report to the court relating to the continued operation of the corporation, as a protection to its minority stockholders, and the retention of jurisdiction of the case by the court for that purpose; [23] (d) The retention of jurisdiction of the case by the court for the protection of the minority stockholders without appointment of a receiver or special fiscal agent; [24] (e) The ordering of an accounting by the majority in control of the corporation for funds alleged to have been misappropriated; [25] (f) The issuance of an injunction to prohibit continuing acts of oppressive conduct and which may include the reduction of salaries or bonus payments found to be unjustified or excessive; [26] (g) The ordering of affirmative relief by the required declaration of a dividend or a reduction and distribution of capital; [27] (h) The ordering of affirmative relief by the entry of an order requiring the corporation or a majority of its stockholders to purchase the stock of the minority stockholders at a price to be determined according to a specified formula or at a price determined by the court to be a fair and reasonable price; [28] (i) The ordering of affirmative relief by the entry of an order permitting minority stockholders to purchase additional stock under conditions specified by the court; [29] (j) An award of damages to minority stockholders as compensation for any injury suffered by them as the result of oppressive conduct by the majority in control of the corporation. [30]