Fryar Law Firm, P.C. announces the successful resolution of a shareholder dispute involving Houston-based oil and gas industry consulting firm, Decision Strategies, Inc. In late March 2009, DSI implemented a reduction of force, which adversely affected one of the minority shareholders. The corporation did not exercise its option to repurchase the minority shareholder's stock. Therefore, because the corporation did not pay dividends, the corporation's actions left this minority shareholder with no income and no means of obtaining an economic return on stock ownership. Fryar Law Firm was retained by the shareholder to advise as to the legal rights of minority shareholders. Fryar Law Firm immediately informed the corporation and its controlling shareholder that the current situation was in derogation of the shareholder's reasonable expectations and that the firm intended to undertake a comprehensive inspection of the company's records for the purpose of discussing a financial restructuring to achieve greater fairness for minority shareholders. The parties then entered into negotiations that resulted in an agreement for the purchase of the shares at a mutually-agreed value and a full and final settlement of all potential disputes among the parties. In this case, all parties acted in good faith and with a view toward resolving a difficult situation in a way that was fair to all. While many minority shareholders do not have the advantage of working with controlling shareholders willing to examine their actions in light of the rights and interests of the minority, the prompt and successful resolution of this dispute shows what can be accomplished by a minority shareholder who knows and is willing to assert the rights guaranteed by Texas law.
