Minority Shareholder Disputes
Most businesses begin the same way: with trust among the partners, with optimism for the business plan, and with great hope for the future. But of course, they don’t always end that way. And very often, it’s because the trust, confidence, and good faith among the partners give way to greed, intimidation, and ego. And that typically results in behavior whereby majority (or controlling) partners abuse and control the minority partners. This is accomplished in a multitude of ways. The controlling partners may simply start ignoring your input and recommendations for the business. Or they may cut off your access to company books and records. Or they may change the compensation structure to withhold your dividends re-direct them to other partners. Or they may demand that you sell your shares to them for a fraction of their real value. The list goes on and on.
But what can be done to stop this behavior when you find yourself in business with someone whom you can’t trust, can’t work with, and maybe can’t even speak to?
Plenty.
These disputes happen all the time, so New Jersey courts are well equipped to handle them by fashioning a wide variety of solutions, including:
• Stopping partners from engaging in oppressive behavior;
• Stopping a sale or other business project that’s occurring against your will;
• Granting you access to books, records, and finances;
• Removing an oppressive partner;
• Directing your partners to buy out your interest at fair market value;
• Directing your partners to sell their interests to you;
• Ordering the business sold on the open market; and
• Dissolving the business.
Whether your business is a corporation, an LLC, a partnership, we can help. Call us now.
