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Shareholder Dispute in New Jersey

Aug 31, 2015

Shareholder Dispute Litigation and Employee Loyalty

I have previously written on this site about who gets “custody” of the company’s customers in a business divorce.  Related to this topic, can employee loyalty become an issue in shareholder divorce litigation?

Many times, it is clear who will remain with the company in the event of shareholder dispute litigation.  For example, if a 10% shareholder who has never worked for the company sues for oppression, the suit is not likely to confuse the employees, as it will be viewed as an internal, ownership matter. » Read More

Jul 22, 2015

Shareholder Oppression Litigation Does Not Need To Be As Expensive and Time-Consuming As It Is

“Why is shareholder dispute litigation so expensive?” is a complaint common to most clients.  Actually, it is common to all clients, as I have yet to meet one happy to spend large amounts on legal fees.  Many business owners know from experience how expensive commercial litigation can be, so if they find themselves embroiled in a shareholder dispute, the fees that can be spent come as no surprise.» Read More

Jun 17, 2015

Make Sure You Have An Up-To-Date Shareholder Agreement Before It’s Too Late

No matter how many times I write about it, new clients keep coming in who have no signed shareholder agreement.  As regular readers of this site well know, a minority shareholder still has protection against wrongful acts based on the New Jersey shareholder oppression statute.  However, there are many ways that not having a shareholder agreement could cause a significant problem.» Read More

May 31, 2015

Shareholder Oppression May Be Easier to Prove Than You Think – Which Should Worry Majority Shareholders

While most of my posts on this blog look at shareholder dispute issues from the perspective of the oppressed minority shareholder, I have represented numerous companies defending shareholder litigation, as well.  One corporate client  recently wanted to know how to avoid such litigation if the shareholder agreement has been long-ago agreed to, and there is little that can be done to get near-warring parties to agree to anything in writing. » Read More

Apr 30, 2015

Will A Court Reinstate A Terminated Shareholder-Employee?

An injunction is when a court orders someone to do something, or not to do something.  These can be very difficult to obtain – in some circumstances – and are often not granted when money damages at the end of a lawsuit can make the aggrieved party whole.  In shareholder dispute litigation, injunctions are often a critical tool.  A court can order the majority shareholder not to take certain actions that would be hard to unwind at the end of the case. » Read More

Mar 26, 2015

I Gave Away My Right to Co-Sign Checks – Now What?

Do you remember when you first began your company, and you used to trust your business partner? For many people reading this website, those days unfortunately seem long ago and far away.

When you started things up, you may not have paid close attention to at least some of the details. It may be that while you were focusing on big picture items, not all i’s were dotted, and not all t’s were crossed.» Read More

Mar 09, 2015

David C. Roberts To Present “The Good, Bad & Ugly Of A Business Divorce” Seminar On April 16

David C. Roberts and Norris McLaughlin & Marcus, P.A., cordially invite you to a complimentary breakfast seminar that will explain your rights as a shareholder. You may feel your business partner is defrauding you by taking too much money and using the company as a personal piggy bank.  Or, you may simply feel kept in the dark, marginalized, and left out in the cold. » Read More

Feb 18, 2015

LLC Members Have Equal Rights as Corporate Shareholders When It Comes To Minority Owner Oppression

Many times a law is enacted, but a judge or appellate court makes a decision that casts the interpretation of that law into chaos. (Of course, none of the judges I regularly appear before would ever do this.) Almost one year ago, the New Jersey LLC Act was amended to give LLC members the minority owner oppression remedies historically applied to shareholders of a corporation.» Read More

Jan 26, 2015

Are Dividends A Mask For Financial Fraud?

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.  However, it can be equally true that a stronger economy, like we may be experiencing at the moment, can also be used to mask fraud.» Read More

Dec 16, 2014

Can A Shareholder Compete With That Company After Employment Termination?

Often employees sign non-compete and non-solicitation agreements that spell out what an employee can and cannot do after employment is terminated. Usually, if an employee never signed such an agreement, he or she is free to compete post-employment, provided confidential information is not involved. However, when the employee is also a shareholder, as is often the case in closely held corporations, there is a twist.» Read More

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