The Majority Rules: Vulnerability of Minority Owners in Limited Partnerships — September 2011

Minority shareholder oppression has long been recognized as a cause of action in Texas, routinely applied to close corporations and limited liability companies (“LLCs”). Yet no Texas court has considered — and thus either applied or rejected — this doctrine in the limited partnership (“LP”) context.This article advocates that, based on the applicable case law and statues, the balance of factors strongly support the application of the minority oppression doctrine to LPs.