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When Informal Corporate Governance Becomes Oppression: A Cautionary Tale for Family and Small Businesses

The case of Hurburgh v Hurburgh acts as a stark reminder of the need to ensure commercial practices are fair to the shareholders as a whole or possibly face an oppression claim as an oppressed shareholder can obtain relief even where there has been no malice or bad intention.

In the case of family and small businesses, oversights and inconsistencies in corporate governance can be the tipping point for an oppression claim as was discovered in this case.

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