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 year-and-a-half ago, on June 5, 2018, I wrote “A Valuation Expert in Business Divorce Litigation Can Help Early On” about the value of retaining a valuation expert early on. Knowing what your shares may be worth can be an invaluable tool when approaching negotiations relating to being paid for those shares, or in determining whether or not shareholder dispute litigation may be cost-effective. » 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
As I have said many times in this blog, when minority shareholder oppression occurs, the most likely remedy is a buyout. In other words, courts in New Jersey have the power to compel the majority shareholder to pay “fair value” to an oppressed minority shareholder so the victim of wrongdoing is not forced to remain captive as a shareholder in a company that is treating him improperly. » Read More
I’ve previously written about the fact that, in many cases, a minority shareholder who knows with absolute certainty that he or she is an owner still may have such status challenged. I have heard some crazy – and some not so crazy – arguments as to why someone is not actually an owner. » Read More
When two new clients recently came in to have an Operating Agreement prepared for their newly created LLC, they indicated that they had read my website. Since I had experience in litigating shareholder disputes, they wanted to know how to make a “bulletproof” Operating Agreement, so that there would never be litigation if they disagreed over an issue. » Read More
