When you file business divorce litigation against your business partner, is it possible to hurt the very company you are fighting over?
As many small business owners who have gone through a shareholder oppression claim know all too well, the facts that lead to litigation may be very messy. » Read More
Commencing business divorce litigation – filing a suit or at least exploring a suit against your business partner – is a huge step. Obviously, starting what can be analogized to a “war” cannot be undertaken lightly. But trust between business partners is critical. » Read More
A business partner who has been planning to take over operations entirely, freezing out his co-owner, may have found the perfect opportunity with the COVID pandemic.
The horror and tragedy of the pandemic have not stopped some business owners from using it as an excuse in an attempt to justify truly unjustifiable actions. » 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
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
Many clients who come in to discuss a possible business divorce action are already anticipating obstacles to their own case. Having a foresighted, prepared client is wonderful. But when those clients take matters into their own hands before even coming into my office, sometimes they have harmed more than helped their own case. » 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
When minority shareholders in New Jersey (including LLC members) are being treated unfairly or oppressively, the New Jersey minority shareholder oppression statute provides significant rights that are written about quite frequently on this site. The upside of a successful oppression suit is often a buyout at market value. » Read More
When majority shareholders want to force a minority owner out of the company, there are a variety of means for doing so. One of the most popular methods is the unnecessary capital call.
One recent case involved a client who was a part owner of a corporation that seemed, on the surface, to be in need of money. » Read More
