Shareholder Agreements Protect Minority Shareholders From Oppressive Conduct – Employment Agreements

HNWShareholder Rights Litigation

  • A primary claim for shareholder oppression is termination of employment.
  • “A minority shareholder’s loss of employment within a closely held corporation can be particularly harmful because a job and its salary are often the sole means by which shareholders receive a return on their investment in the corporation.”
  • The NJ Supreme Court has ruled that at-will employment is permissible in NJ and employers and employees have the freedom to contract for a different employment relationship.”

The courts have generally concluded that shareholder-employees must look to employment agreements with the corporation as (essentially) principle protection against the loss of employment in an oppression scenario: “For employment terminations that fall short of NJ discrimination laws and other employee protection, however, the principles of at-will employment compels shareholders to contract for any desired employment assurances in their shareholder agreements.”

To discuss your NJ shareholder matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at  Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.

By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Shareholder Attorney

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