In a shareholder oppression lawsuit, clients often think that if they have ever done something “wrong,” they have somehow lost their legal rights to complain about fraud or unfairness by the majority.  While a skeleton in one’s closet can be problematic, it is rarely bad enough to cause a minority shareholder to lose the ability to sue his business partners who are treating him improperly. » Read More

I have posted several times (most recently in January) about termination of an employee/shareholder constituting oppression, because this type of misconduct by majority shareholders happens all the time.  If one had a reasonable expectation of continued, even indefinite, employment, the act of termination itself could constitute shareholder oppression under New Jersey law, possibly giving the terminated shareholder the right to be paid for his or her shares.  » Read More

I have previously written about one of the most common forms of business partner dispute – the case of an employee/shareholder who is fired as an employee.  Of course, one’s shares cannot be taken away, but without a job, the shares may seems useless. » Read More

Majority shareholders often will not be so bold as to fire a fellow shareholder from his job during a business partner dispute, and they cannot simply take away a minority shareholder’s stock interest.  Instead, the Freeze-Out, or Squeeze-Out, can become the weapon of choice. » Read More

What are the rights of a minority shareholder in a closely-held business who is not directly involved in running the company and receives no benefit whatsoever for his shares – no salary, no dividend, no benefit of any kind?  Of course, the answer depends on the specific facts of any particular case.  » Read More

As the economy keeps getting worse, many family-run businesses are finding that conflicts between shareholders that had been brewing beneath the surface for years are finally coming to a head, and business partner disputes are becoming more common in such businesses.  » Read More

The headlines about the millions in bonuses paid to AIG executives with our tax dollars have struck a chord with many people.  But for minority shareholders of many small, closely held businesses, this issue has struck a raw nerve because it is reflective of what is going on in their own business.   » Read More

In my last posting, I discussed how the current recession could be used by an unscrupulous majority shareholder to hide his embezzlement.  Unfortunately for several clients I have met with in the past couple of months, these words proved prescient. » Read More

Shareholder oppression can take many forms, but one of the most common is terminating a shareholder/employee from his or her employment.  New Jersey case law discusses “oppression” under the applicable statute as a frustration of a shareholder’s “reasonable expectations.”  Terminating one’s employment may satisfy this test. » Read More