Norris McLaughlin & Marcus, P.A.

Blogs > Shareholder Disputes in New Jersey

New Jersey

Apr 28, 2017

Trust But Verify Regarding Financial Information

Minority owners of closely-held corporations (in New Jersey) often put themselves in a position where they are cut off from access to the company’s books and records.  When that happens, several things can occur, and few of them are good.

For example, majority shareholders who have unfettered access to the company’s finances often abuse their power by granting themselves impermissible benefits that are not related to their employment by the company, and are not proportionately shared with the minority shareholders. » Read More

Jan 17, 2014

Get out of That New Jersey LLC before the Law Changes?

In my last post, I wrote about the fact that your right to simply withdraw from a New Jersey LLC and be paid fair market value for your shares – provided the Operating Agreement does not prohibit this – is being eliminated on March 1, 2014.  Many readers of that post have contacted me, hoping there was a way to extend that deadline. » Read More

Nov 20, 2013

Termination of LLC Member Employee Could Soon Be Considered “Oppression”

Recently, a defendant testified in a deposition that I was conducting that there was no reason that he could not fire my client, who was a 28% minority shareholder in a New Jersey corporation.  Since the defendant was the majority (51%) owner, he believed he could fire whomever he wanted.

Of course, he is right.  He could fire whomever he wants. » Read More

Oct 11, 2013

New Jersey LLC Minority Members Can Look Forward to More Protection

I have written many times over the years about the differences between a corporation and an LLC when it comes to minority owner rights in New Jersey.  On many occasions, I have written about the fact that shareholder rights are much more expansive in a corporation, and much more restrictive in an LLC.  That all changes of March 1, 2014.

On that date, the existing LLC statute is being repealed, and the oppressed minority shareholder statute is effectively being incorporated into the LLC statute.» Read More

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