Often a minority owner becomes suspicious that their partner is stealing from the company. But what if your business partner is stealing from or defrauding third parties to benefit your company? Should you report it? Must you report it?
Such wrongdoing could take many forms. » Read More
Many clients think they are helping themselves by attempting to build their own case against their business partner, even before they come to see an attorney. While sometimes that may be true, many times it is not, and they may be hurting themselves instead. » Read More
Minority shareholders may be entitled to a legal remedy, including possibly a buyout, if they suffer from “shareholder oppression” under New Jersey law. Many clients find that the statute uses both the words “mismanagement” and “oppression” when searching online. From the perspective of a minority owner who believes he is, at best, being taken advantage of, it is difficult to think of what is happening as anything other than “mismanagement.” » Read More
Clients often come in fully believing their business partner is cheating them somehow. But they have been denied access to the company financial information for so long they don’t really know for sure. The quandary becomes, what if I spend all that money to file suit and I’m wrong? » Read More
If you have read my prior articles, you know that an oppressed minority shareholder in New Jersey is often entitled to the remedy of a court-ordered buyout of his or her shares. However, not only is that not always the remedy a court will impose, but it is also not always the remedy a minority shareholder wants. » Read More
If you are a 50 percent owner of a company but feel that your business partner treats you like a minority stakeholder, you are not alone. Many times, a 50 percent owner of a company will assume equal ownership means equal control. » Read More
Many times, minority shareholders have a suspicion, but no direct knowledge, of the majority shareholder(s) improper behavior. For example, what if you believe the majority shareholders are improperly running all their expenses through the company but don’t have any proof?
First, let’s examine how and why this could be considered shareholder (or member, in the case of an LLC) oppression under New Jersey law. » Read More
I have written in the past about majority shareholders taking a business opportunity for themselves and starting a competing company as a form of shareholder oppression. However, the shoe can also be on the other foot. What do you do if you are a minority shareholder in New Jersey and you would like to start a side business? » Read More
The only thing better than winning business divorce litigation is avoiding it altogether; and making sure that you, as the majority shareholder, treat the minority shareholders fairly is the best way to do that.
Business owners, seeking to watch the “bottom line,” tend to avoid legal fees like the plague. » Read More