Often a minority shareholder who has issues with the majority owners and wants “out” is not alone; often more than one minority owner has the same, or at least similar, issues or complaints. But is “strength in numbers” always a good thing?  » Read More

When majority owners of a closely-held business engage in conduct that constitutes shareholder oppression, it comes in all shapes and sizes. One wrongful act that seems to be occurring more frequently is the creation of a competing company that excludes one or more minority shareholders. » 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

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

In my last post, I addressed the fact that, just because a minority shareholder has gone along with certain practices in the past, his acquiescence will not necessarily be fatal to a shareholder oppression claim.   However, that does not mean you should simply go along with something that you fundamentally disagree with, and assume it will have no consequences to you in the future. » Read More

A common theme among minority shareholders seeking legal representation is termination of employment.  Readers of this blog may be aware that termination can often constitute minority shareholder oppression, warranting a remedy such as a court-ordered buyout.  But, unfortunately, not all terminations are equal, as not all terminations constitute oppression. » Read More

Many times, minority shareholders pursuing their shareholder oppression rights, as well as majority shareholders being sued for minority shareholder oppression, feel the important thing to look for in an attorney is experience dealing with the particular industry that the company occupies.  » Read More

In the last year or so, I have seen several business owners who are not very happy that New Jersey LLC members now have the same protection from minority oppression that is enjoyed by minority shareholders of corporations. To “protect” against such lawsuits, apparently several attorneys around the state are advising clients to add to Operating Agreements a clause that waives this protection. » Read More

In New Jersey Shareholder Dispute Litigation, Your Concern Must be Your Own Interests, Not the Interests of Other Minority Shareholders, or Even Family Members

When a new client comes in complaining that he is being treated unfairly by his business partners and hears that he may have the right to be paid for his shares, that potential remedy is often appealing. » Read More

I have written extensively about the difference between the law in New Jersey protecting a minority shareholder in a corporation, and the law protecting a minority member in a limited liability company (LLC).  Most lawyers practicing extensively in this area of law have long argued, and believed, that the statute protecting minority shareholders in a corporation from what is considered “shareholder oppression” does not apply to LLC’s (much as we may want it to).  » Read More