Business Owner Rights Blog
A Recipe for Disaster – Giving Your Attorney an Ownership Interest
Over the years, I’ve written extensively on the problems that can arise when an entity is formed with the attorney for the group also participating in the venture as a partner, co-shareholder or co-member with ownership interest. A new decision from the Disciplinary...
Will You Actually Be Paid On Your LLC or Partnership Buyout?
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...
“Notice and Cure”: Two Critical Words in Partnership and LLC Disputes
It is often the case that shareholder agreements, partnership agreements, or limited liability company operating agreements contain express provisions which require an aggrieved party to give the other side written notice of disputes and an opportunity for the other...
Achieve a Quick and Painless Resolution to Your Shareholder or Partnership Dispute
I hear many horror stories about a shareholder or partnership dispute that went on for years before reaching a resolution. I always tell people that most disputes can (and should) be brought to a quick and efficient resolution. Peckar & Abramson, P.C. brings a...
CLEAN Exit: Negotiating the Partnership or Shareholder Buyout
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...
Shotgun Buy/Sell Option Agreements
When I served in the armed forces, a shotgun was not exactly “standard issue”. It is far too much of a blunt instrument. The same might be true when dealing with a “shotgun buy/sell” provision in your shareholder, partnership or LLC operating agreement. A shotgun...
Non-Solicitation & Non-Compete Agreements in Shareholder Disputes
It is common to include non-compete and non-solicitation provisions in operating, shareholder or partnership agreements. When there is a dispute, these provisions contain limitations on the parties to the relationship in terms of what can and cannot be done in the way...
If Your Shareholder or Partnership Agreement is Ancient and Has Not Been Followed For Years, Can You Argue that It Has Been “Abandoned” In Order to Avoid Its Terms?
In several shareholder disputes we have handled, the other side has attempted to argue that a shareholder agreement executed years prior by the shareholders, had fallen into disfavor and was not typically followed, such that it had become “unenforceable” because it...
ICDR Issues Final Award In Shareholder Oppression Case
Shareholder oppression takes many forms. Also, oppression can be difficult to address especially when co-shareholders are foreign entities who are not easily sued in the American courts. Recently, I led a team who secured a substantial award from the American...
Can My Lawyer Represent Me and My LLC?
Can my lawyer represent me and my LLC? Simply put, no a lawyer cannot represent both the LLC and individual members in a shareholder dispute where there is a history of the lawyer representing the LLC and looking out for the interests of the members in the past, and...
New Jersey Limited Liability Company Law & Forced Member Buyouts
In my prior blogs, I have addressed the importance of having an operating agreement for any business owner. Most importantly, for those operating as a limited liability company. I have also covered legislative changes in New Jersey with the adoption of the Revised...
Does an LLC’s Operating Agreement Control Valuation?
Will the terms of my operating agreement control valuation of my member interest in any future dispute even where the members have failed to follow it in the past? In short, probably. Think of the operating agreement for your limited liability company as the key to...
