By Fredrick P. Niemann, Esq., a NJ Shareholders Attorney
Most closely-held NJ Corporations begin with a friendly, profitable relationship between a few shareholders. Unfortunately, these relationships don’t always remain amicable. Once businesses get underway, circumstances change. Expectations of the shareholders may vary as the business expands. Attitudes toward other shareholders may not be the same as they once were. As the business evolves, so do the views of the shareholders. Often times, individuals disagree on the direction the corporation is headed, with some favoring expansion and others happy with the way things are.
A difference in opinion does not give majority shareholders the right to oppress minority shareholders within their NJ corporations. New Jersey legislatures have protected minority shareholders by creating laws that specifically address minority shareholder oppression. These laws give minority shareholders the right to take action in the NJ Courts if they are taken advantage of by majority shareholders. The most common disputes between shareholders that arise in New Jersey courts are:
1. Breach of Fiduciary Duty;
2. Breach of the Duty of Loyalty;
3. Breach of Contract;
4. Tortious Interference with a Prospective Economic Advantage;
5. Usurpation of a Corporate Opportunity;
6. Breach of the Covenant of Good Faith and Fair Dealing;
7. Fraud;
8. Conversion;
9. Other Violation of Minority Shareholder Oppression Statute.
Contact me personally to discuss your NJ Shareholder matter. I am easy to talk to, very approachable and can offer you practical, legal ways to handle your concerns. You can reach me toll free at (855) 376-5291 or email me at fniemann@hnlawfirm.com.