What is a Minority Shareholder?

A minority shareholder is a shareholder who does not have control over a corporation. Typically, the minority shareholder has less than 50% of the corporation’s voting shares. While many minority shareholders have some say over the company’s affairs, the majority shareholder will typically have the most control over the corporation.

What are Minority Shareholder Rights?

In most cases, minority shareholders have at least some rights. Most Texas corporations will discuss the rights of shareholders in the company’s bylaws. In most companies, shareholders will have the right to vote on certain corporate matters, such as the election of directors. Some corporations utilize separate share classes, and some classes may not have voting rights. Additionally, shareholders may have certain rights under Texas law.

Business Law Archives - Page 3 of 10

Jun 23, 2025 | By Massingill Staff | Read Time: 6 minutes | Business Law

How Long Does It Take to Get an LLC in Texas? SOSPortal Processing Guide

Texas LLC formation time depends on document preparation, the filing method, and the state’s review queue. Standard expedited review is typically 2–3 business days; Texas Express also offers next-day and same-day review, subject to fees, cutoff times, and service availability. These are review targets, not guaranteed approval dates. Updated September 29, 2026: SOSPortal has replaced SOSDirect and SOSUpload for...

May 19, 2025 | By Massingill Staff | Read Time: 4 minutes | Business Law

Top 5 Business Contract Mistakes and How to Avoid Them

Negotiating, drafting, and enforcing contracts is an important part of any business’s life cycle. Contracts form the backbone of successful business relationships, but having the proper contract is critical. A properly executed business contract should clearly outline the terms and conditions of the agreement, including the rights and obligations of each party, and provide mechanisms for resolving disputes, all...

May 19, 2025 | By Massingill Staff | Read Time: 5 minutes | Business Law

How To Remove a Member From an LLC in Texas

Removing a member from a Texas LLC starts with the company agreement and the reason for the proposed exit. A negotiated buyout, a permitted withdrawal, and a disputed expulsion involve different procedures. A disagreement does not automatically give the other owners the right to cancel someone’s interest. Planning an agreed buyout or ownership change? Our contract drafting and review...

Apr 23, 2025 | By Massingill Staff | Read Time: 6 minutes | Business Law

How To Dissolve An LLC In Texas

To dissolve a Texas LLC, approve the closure under the governing documents and Texas law, wind up the business, address debts and taxes, and file a Certificate of Termination with the Texas Secretary of State. Closing your doors alone does not terminate the LLC. The state filing uses Form 651, which lists a $40 filing fee. You also need...

Mar 20, 2025 | By Massingill Staff | Read Time: 5 minutes | Business Law

Business Lawyer Vs. Corporate Lawyer: Which One Does Your Business Need?

For a layperson or a small business owner, sometimes it is difficult to tell the difference between a business lawyer and a corporate lawyer. Both sound like they know what happens behind the boardroom doors. But like everything in law, there is usually a reason for specific terminology. If you are struggling to understand whether your situation calls for...

Mar 20, 2025 | By Massingill Staff | Read Time: 4 minutes | Business Law

How Much Does It Cost to Sue a Company in Texas?

When a business mistreats someone, it might be time for the mistreated party to sue. A business lawsuit can right many wrongs and bring closure in a dispute, but it can also come with a hefty check for the plaintiff. When considering legal action against a business, the natural question is, How much does it cost to sue a...

Mar 20, 2025 | By Massingill Staff | Read Time: 3 minutes | Business Law

Texas Business Name Search: Check Availability in SOSPortal

Updated September 29, 2026 To check a Texas business name, start with the Secretary of State’s SOSPortal. It replaced SOSDirect and SOSUpload on September 29, 2026. You can search state business records online or ask the Secretary of State for a preliminary name-availability determination by phone or email. A search is a first step, not final approval. The state...

Mar 19, 2025 | By Massingill Staff | Read Time: 4 minutes | Business Law

What Happens If You Break a Non-Compete Agreement?

Many employment agreements contain clauses about non-competition. You may not have noticed or didn’t pay much attention to the clause when you first signed your employment contract. Businesses rely on non-competition clauses to protect proprietary information and prevent former employees or contractors from using it to compete against them. If you are about to leave your job for a...

Mar 18, 2025 | By Massingill Staff | Read Time: 4 minutes | Business Law

What Are the Four Elements Of Breach of Contract Claim in Texas?

When someone fails to comply with the terms of a contract, you may have grounds to file a breach of contract claim. These types of lawsuits are common in business litigation. There are four elements of a breach of contract claim: a valid contract, performance, breach, and damages. In this blog, we define each element of breach of contract...

Feb 17, 2025 | By Massingill Staff | Read Time: 6 minutes | Business Law

Guide to Minority Shareholder Rights in Texas

Being a business owner is a great experience. The pride of watching a company grow is second to none, and being a part of that process is amazing. But sometimes, even the strongest businesses can run into problems. What happens when you are not the controlling owner of a company? Do you have any rights, or are you at...