Business Owner Rights
Members, Shareholders and Outside Opportunities
Published Date: August 1, 2022
When a LLC or closely-held corporation is thriving and everyone is doing well, there may not be friction or infighting. In good times, one rarely cares what the other shareholders or members are doing in their spare time. But, in our experience, things change when times get tough. During these times, some question a significant imbalance between the earnings of the [...] Read More
When a Shareholder Dispute Goes Off the Rails
Published Date: July 22, 2022
New Jersey shareholder disputes take many forms, and are often fodder for colorful opinions from the Courts. A new opinion from the New Jersey Supreme Court in a long-standing shareholder dispute, Sipko v. Koger, provides some concrete lessons on how not to handle such a dispute. It also shows that digging in and fighting hard may not be the best [...] Read More
Forced Expulsion of a New Jersey Limited Liability Company Member
Published Date: July 19, 2022
What happens when the relationship between members of an LLC becomes acrimonious perhaps even the subject of litigation? Can a forced expulsion of a LLC member happen because of his or her actions? There are not easy answers to these questions. The expulsion provisions in New Jersey’s Revised Uniform Limited Liability Company Act (“LLC Act”) statute are relatively new. However, [...] Read More
Will You Actually Be Paid On Your LLC or Partnership Buyout?
Published Date: May 9, 2022
In New Jersey, negotiating a buyout of your member interest in a LLC, partnership, or closely-held corporation is an art. As such, you should insist on certain requirements if you will be receiving your money in installments. On paper, you could be receiving a substantial amount of money. However, have you fully protected yourself to ensure you will actually be [...] Read More
CLEAN Exit: Negotiating the Partnership or Shareholder Buyout
Published Date: April 5, 2022
Members, shareholders or partners departing from an established business must have a clean exit. Whether leaving on your own or being bought out, clearly define obligations on both sides. Here are some of the considerations to keep in mind when negotiating and documenting a CLEAN exit. C Clearly defined financial obligations on both sides and compensation to the departing partner [...] Read More
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