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
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
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
When your business partner commits an illegal act, it is not always something that directly harms you, like embezzlement. In fact, some illegal acts could actually benefit you. For example, if you are a 50% owner of a closely-held business in New Jersey, but your business partner is the one in charge of financial matters, you may benefit personally and directly from tax fraud. » Read More
Many business divorce cases start because one partner is improperly taking money from the business. Such behavior can come in many different forms, including a majority shareholder wildly overcompensating himself, running personal expenses through the business, or having family members on the payroll with a no-show job. » Read More
David C. Roberts, a Member of Norris McLaughlin, P.A., is pleased to present a seminar for all business owners that will answer many of the questions, both known and unknown, a shareholder would have, such as:
Previously on this website, I wrote about how a recession can help an unscrupulous business partner hide his fraud (Nov. 2008). For example, I explained that “tough economic times” can be used as an excuse to stop paying dividends or providing other financial benefits to minority shareholders. » Read More
When you are a small business owner, your business partner is often the closest person in your life, besides your spouse. Many would agree that if you suspect your spouse is cheating on you, he or she probably is. At the least, there is a major problem in the marriage. » Read More