A newly-decided case in New Jersey dictates that the court follow an operating agreement (LLC) or shareholder agreement (corporation) that has a specific provision on valuing shares when an owner is retiring or otherwise voluntarily leaving. » Read More
The truth about business divorce litigation in New Jersey is that most of them result in some sort of buyout. An entire (expensive) litigation often takes place over related and critical issues, such as who will be the buyer and who will sell; valuation issues, including (sometimes) the valuation date; and the equalization of money (such as when one side has paid itself too much). » Read More
Even after nearly three decades of handling shareholder disputes, every so often I get a case that presents new challenges and never-before-seen issues. Last week, we were able to declare victory in one such case when my partner, Andrew Linden, and I successfully moved to dismiss a corporate governance case involving an Indian Temple on First Amendment grounds. » Read More
Shareholder oppression – at least in New Jersey – does not necessarily mean you must prove that your business partner is acting maliciously. In fact, he could be a wonderful human being who honestly believes that he is doing the right thing for the business at all times and would never intentionally hurt you or the business. » Read More
When majority owners of a closely-held business engage in conduct that constitutes shareholder oppression, it comes in all shapes and sizes. One wrongful act that seems to be occurring more frequently is the creation of a competing company that excludes one or more minority shareholders. » Read More
There appears to be an uptick in the filing of meritless corporate shareholder and LLC member oppression claims in New Jersey. Not everything that majority shareholders do that upsets a minority owner is worth spending legal fees to pursue.
When the only allegations one can make are a failure to keep an absentee shareholder fully informed of all business transactions, and a failure to obtain that minority shareholder’s consent to such transactions, that alone is rarely a recipe for successful litigation. » Read More
Years ago, oppressed minority shareholders in New Jersey corporations had more protection than oppressed members of a New Jersey LLC. When the statute was revised in 2014, that changed, and LLC members now have similar remedies available to them. But there is one little-known section of the New Jersey LLC statute that makes it a more powerful tool for the majority owners than the corporate statute – the ability to “dissociate” a member. » Read More