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
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
When you catch your partner in a breach of trust, can you ever trust him again? And even if you can, are you better off just moving on separately, or can the relationship ever really be repaired?
It may sound like this article is discussing a marriage, but that is what a business partnership is like in some cases. In fact, one judge in New Jersey often refers to business separation litigation as a “corporate divorce.”
A breach of trust with your business partner can occur in many ways, from finding out that he or she has opened a competing business to discovering that he has been reimbursing himself for wildly expensive and purely personal expenses for years, always hiding the evidence from you. » Read More
Shareholder litigation: Those two words designate an action that can be profoundly disruptive to a business, because the mere existence of such a pitched battle between owners can bring a closely held company to a grinding halt.
When shareholder litigation is pending, the owners obviously have issues with each other severe enough to warrant filing suit. Those cases can involve allegations as nasty as fraud, mismanagement, or even embezzlement. » Read More