Shareholder oppression – at least in New Jersey – does not necessarily mean you must prove that your business partner is acting maliciously. In fact, he could be a wonderful human being who honestly believes that he is doing the right thing for the business at all times and would never intentionally hurt you or the business. » Read More
There appears to be an uptick in the filing of meritless corporate shareholder and LLC member oppression claims in New Jersey. Not everything that majority shareholders do that upsets a minority owner is worth spending legal fees to pursue.
When the only allegations one can make are a failure to keep an absentee shareholder fully informed of all business transactions, and a failure to obtain that minority shareholder’s consent to such transactions, that alone is rarely a recipe for successful litigation. » Read More
Many clients who come in to discuss a possible business divorce action are already anticipating obstacles to their own case. Having a foresighted, prepared client is wonderful. But when those clients take matters into their own hands before even coming into my office, sometimes they have harmed more than helped their own case. » Read More
Many business divorce cases start because one partner is improperly taking money from the business. Such behavior can come in many different forms, including a majority shareholder wildly overcompensating himself, running personal expenses through the business, or having family members on the payroll with a no-show job. » Read More
No matter how many times I write about disputes between business partners, and how many times clients tell me their horror stories, I remain amazed by the ease with which some major business divorces could have been avoided. Most of the time, when a shareholder dispute could have been averted, it is because one of the parties just needed to listen to the other. » Read More
Not surprisingly, business divorce litigation can be quite costly. Whether this cost is “worth it” is not always so easy to figure out. If a minority shareholder or LLC member in New Jersey has an interest valued at $600,000, spending $50,000 – $100,000 in legal fees may be warranted to achieve a buy-out. » Read More
David C. Roberts, a Member of law firm Norris McLaughlin, P.A., will co-present “Anatomy of a Corporate/Business Divorce” with Hubert Klein of EisnerAmper, LLP, on Thursday, June 21, at the National Association of Certified Valuators and Analysts (NACVA) and the Consultants’ Training Institute’s (CTI) 2018 Annual Consultants’ Conference to be held June 20-22 at Caesar’s Palace in Las Vegas. » Read More
One of the most common reasons for a minority shareholder to file “business divorce litigation” is because that minority owner feels left out, pushed out, squeezed out – simply not part of the process in any significant way. Quite often, the minority owner is pushed out for a reason that is not entirely unjustified. » Read More
You likely came across this article if you Googled the term “shareholder dispute.” However, it is just as likely that you Googled the term “business divorce.” One business owner suing the other(s) to be bought out, or some other escape, is often rightly referred to as business divorce because it is analogous to a divorce among spouses in obvious ways. » Read More
