Reference no: EM132232762

PipesRUs was a family-operated close corporation that sold plumbing supplies in New York. The founder and president, Paul Carter, transferred his shares in the corporation to other family members; and when Carter died in 1984, the position of president passed to his son, Jimmy Carter. Jimmy held a one-third interest in the company, and the remainder was divided among Paul’s other chil­dren and grandchildren. All shareholders participated in the corporation as employees or offi­cers and thus relied on salaries and bonuses, rather than dividends, for distribu­tion of the corporation’s earnings. In 1986, several of the family-member employees re­quested a salary increase from Jimmy, who claimed that company earnings were not sufficient to warrant any employee salary increases. Shortly thereafter, a shareholders’ meeting was held (the first in the company’s fifty-year history), and Jimmy was removed from his posi­tion as president and denied the right to participate in any way in the cor­poration. Jimmy sued to have the company dissolved because he had been frozen out. Discuss whether Jimmy should succeed in his suit or whether the court would choose another alternative.