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Blogs > Shareholder Disputes in New Jersey

Minority Shareholder Rights

Apr 30, 2020

Don’t Let Your Business Partner Use the COVID-19 Pandemic to Hide Misconduct

Many business owners reading this article are facing a severe COVID-19-related economic downturn and simply struggling for survival. However, this does not describe all businesses. Some have been, and remain, closed completely. Some are better able to adapt to a remote environment than others, and some may even thrive in this environment. » Read More

Mar 27, 2020

While Filing a Shareholder Oppression Claim Might Be the Last Thing on Your Mind Right Now Due to the COVID-19 Virus, Waiting to File Could Potentially Prejudice Your Valuation

The world has changed. The COVID-19 virus is impacting everything and everyone, and certainly only the most fortunate of businesses will not be adversely impacted. If you as a business owner have reason to believe that you are an oppressed minority shareholder with the right to file suit against your fellow shareholder(s), it is easy to conclude that you perhaps should hold off on filing that shareholder oppression claim, at least until some semblance of normalcy has been restored. » Read More

Feb 25, 2020

Hidden Competition: A Common Form of Oppression

If you are a passive investor in a closely-held business, there are many things from which you need to protect yourself. In New Jersey, these can include excessive salaries and bonuses, personal expenses being run through the company, cash transactions never making their way onto the books, and relatives on the payroll in no-show jobs. » Read More

Nov 07, 2019

Shareholder Dispute Litigation: When You Can Choose to Sell or Buy Your Company Shares in a Business Divorce

Attorneys often use the phrase “business divorce” to describe when business partners can no longer get along and want to be legally separated from each other, or at least one of them does.

But what happens when, like divorcing parents arguing over child custody, no one can agree who should wind up with the company?  » Read More

Jun 11, 2019

Bad Faith Is Not Necessary for a Business Divorce

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

Mar 18, 2019

Minority Shareholders Don’t Always Have a Right to Information

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

Dec 07, 2018

Why Should the Majority Owners Have More Valuation Documents Than I Do?

Since litigation is so expensive, when a shareholder dispute arises, talks about the minority shareholder being bought out often happen before attorneys even become involved.  Often a client will come in with an offer in hand, or even a fully negotiated deal, asking for me to “write it up.”  » Read More

Nov 29, 2018

New Case Addresses Termination of Employment as Shareholder Oppression

I have previously posted on this blog in the past about how the termination of a minority shareholder’s employment can constitute minority shareholder oppression in New Jersey, possibly entitling the minority shareholder to a buy-out. This is based on the theory that an owner of a small, closely-held business reasonably expects employment as long as he is a shareholder. » Read More