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14 - Commentary on Donahue v. Rodd Electrotype

from Part V - Closely Held Businesses and Other Considerations Regarding the Composition of Boards, Management, and Owners

Published online by Cambridge University Press:  15 January 2023

Anne M. Choike
Affiliation:
Michigan State University
Usha R. Rodrigues
Affiliation:
University of Georgia School of Law
Kelli Alces Williams
Affiliation:
Florida State University
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Summary

Jessica Kiser situates the chapter, explaining that the plaintiff in Donahue was a minority shareholder who sued the company and its directors for breach of fiduciary on account of causing the company to purchase the stock of a former director and controlling shareholder, but refusing to treat her equally by purchasing her shares at the same price. The court held that the company and its directors had breached their fiduciary duty, reasoning that shareholders in a close corporation owe a heightened standard of good faith and loyalty as compared to public companies. Cindy Schipani’s feminist judgment preserves the original opinion’s holding, but expands on the nature of the Donahue’s oppression – not just as a minority shareholder, but as a woman shut out of employment opportunities by virtue of class and gender. Kiser highlights the intersectionality of Schipani’s rewritten opinion.

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Publisher: Cambridge University Press
Print publication year: 2023

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