Shareholders holding what percentage may seek judicial dissolution on minority grounds?

• A. 10% or more
• B. 20% or more
• C. 33% or more
• D. 50% or more

Answer: (B)

In New York close corporations, a minority shareholder has the right to seek judicial dissolution when they hold a substantial minority stake and the company is being run in a way that harms the minority. The threshold recognized for this remedy is twenty percent or more. This level gives the minority enough stake to pursue dissolution to protect their interests when oppression, mismanagement, or deadlock prevents the business from being operated fairly and effectively.

The idea behind the twenty-percent rule is to provide a meaningful remedy for a sizable minority without letting tiny shareholders trigger dissolution for every dispute, while also recognizing that majority control often makes other governance remedies impractical. The other percentages listed are not the standard threshold to initiate dissolution on minority grounds.