Legal fees often should be awarded to a minority shareholder who is mistreated and oppressed by majority shareholders. The applicable statute allows the court’s discretion to a legal fee award in such a case. But it hardly ever happens. Why not? » Read More
As the never-ending pandemic slogs along, many businesses have re-opened, some are still closed, and a significant number are still having many of their employees work remotely, at least wherever possible. This remote, “in-between” existence obviously poses several challenges for companies and employees alike. » Read More
In many places, COVID-19 is making a comeback, or never actually left. But as far as an effective excuse to keep business partners in the dark, the pandemic has been hanging around for far too long. » Read More
If you are having an ongoing issue with your business partner and you attempted to discuss it, how did he react when you started raising concerns about the manner in which he was running the company? If he is like many entrenched majority owners who have let their power and authority go to their heads, his initial reaction was a threat. » Read More
Many business owners reading this article are facing a severe COVID-19-related economic downturn and simply struggling for survival. However, this does not describe all businesses. Some have been, and remain, closed completely. Some are better able to adapt to a remote environment than others, and some may even thrive in this environment. » Read More
The world has changed. The COVID-19 virus is impacting everything and everyone, and certainly only the most fortunate of businesses will not be adversely impacted. If you as a business owner have reason to believe that you are an oppressed minority shareholder with the right to file suit against your fellow shareholder(s), it is easy to conclude that you perhaps should hold off on filing that shareholder oppression claim, at least until some semblance of normalcy has been restored. » Read More
If you are a passive investor in a closely-held business, there are many things from which you need to protect yourself. In New Jersey, these can include excessive salaries and bonuses, personal expenses being run through the company, cash transactions never making their way onto the books, and relatives on the payroll in no-show jobs. » Read More
Attorneys often use the phrase “business divorce” to describe when business partners can no longer get along and want to be legally separated from each other, or at least one of them does.
But what happens when, like divorcing parents arguing over child custody, no one can agree who should wind up with the company? » Read More
A newly-decided case in New Jersey dictates that the court follow an operating agreement (LLC) or shareholder agreement (corporation) that has a specific provision on valuing shares when an owner is retiring or otherwise voluntarily leaving. » Read More
