Norris McLaughlin & Marcus, P.A.

Blogs > Shareholder Disputes in New Jersey

Competition Issues

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

Feb 12, 2010

May a Shareholder Compete After He is Fired as an Employee?

In a previous posting (9/2/08) I discussed the fact that termination of a shareholder from his or her status as an employee could constitute “oppression” under New Jersey law and entitle the shareholder to certain remedies, including a court-ordered buy-out at fair value.  Since then, I have encountered several clients wondering what their rights are while they wait for their case to play out in court. » Read More

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