Terms of shareholder agreement defining employment as “at-will” precludes claim that shareholder could only be terminated “for cause.”
Van Istendal was an employee and minority shareholder in a closely held real estate management company. She took the position that her minority shareholder status mandated that she could only be terminated “for cause.” After being terminated, the plaintiff asserted a claim of minority oppression. However, the Appellate Division dismissed her claim based upon a finding that the shareholder agreement clearly specified that the employment relationship remained “at-will” and was not effected by the ownership interest.
Case Law Alerts, 1st Quarter, January 2019
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