Can I Force Out A Shareholder Out Of My New Jersey Corporation?
Yes. But you need to first carefully evaluate the governing corporate documents - such as a shareholder agreement, if one exists - and carefully scrutinize the methods and legal claim by which you are seeking to force out a shareholder. In New Jersey, shareholder, member and partner force out and lock-out situations typically involve actions of fraud, misappropriation and non-performance. However, before taking any action you must first review and consider your legal obligations as an officer, shareholder and fiduciary of the corporation. Lock-outs typically lead to litigation and, as such, will eventually lead to judicial scrutiny and review of your actions. So, it is important that, prior to taking any action, that you carefully review and plan out your course of action with a qualified New Jersey business attorney.
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