Some clients come in for a consultation with no desire to file an oppressed minority shareholder action. Instead, the goal is to have an attorney draft the papers necessary to accept an offer made by the other side to purchase his or her shares, avoiding just such a court battle. Corporate attorneys who do not handle shareholder oppression cases may assume the purchase price is fair, or at least not question it closely, and simply “paper” the transaction. » Read More
“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
In my last post, I discussed several ways an experienced shareholder dispute attorney can help assess a pre-litigation offer for your shares, including helping you retain a business valuation expert. One critical reason never to retain such an expert on your own is to maintain communications with such an expert as privileged and non-discoverable.
In New Jersey, if an attorney hires the business valuation expert, communications with the expert usually become privileged and non-discoverable.» Read More
Making a low-ball offer to buy your corporate stock is probably the most common tactic used by one owner against the other in disputes between business partners. But how do you know when it’s worth the money to fight for more?
I hear it all the time. “I’ve been frozen (or squeezed) out of the company, and my business partner has offered me only X for my shares.” In a vacuum, of course, such an offer is hard to analyze.» Read More
Representing closely-held businesses with multiple owners presents numerous challenges to the accounting professional. When representing their small-to-medium-sized business clients, most accountants today rarely limit their services to accounting and inevitably wind up delving into business advice. When acting as a business advisor, there are certain matters relating to business entities that every accounting professional must keep in mind.
Accountants are often asked whether their newly created client should incorporate, form an LLC, or create a partnership. » Read More
Shareholders engaged in a dispute or disagreement with their business partners may attempt to negotiate their own buy-out in resolution of the grievance. However, all too often shareholders in New Jersey improperly assess the value of their shares, usually leading them to accept less than their shares are really worth, and sometimes far less than he or she would have recovered in a lawsuit.» Read More
Minority and majority shareholders alike may learn valuable information from reading your company’s financial statements on a regular basis. Your financial statements are not just for the accountants and auditors. They can be a great source of information to help you run your business, big or small.
Comparative financial statements reflect current period information for the month or year along with the information for the same period of the prior year.» Read More