Minority Shareholder Rights in a Shareholder Dispute
If you are a minority shareholder in a New Jersey corporation you should know about one important remedy if you are being faced with a dispute.
Faced with a dispute? We recommend reading:
"The New York and New Jersey Partnership Dispute Guide"
If you are a minority shareholder and you're faced with actions where the majority is out voting you and violating their obligations to you - one important statutory right and remedy that New Jersey law affords you is the Oppressed Shareholder Statute.
What Is The Oppressed Shareholder Statute?
The Oppressed Shareholder Statute (if utilized properly) will give you and your partnership attorney, significant negotiation and litigation leverage. Under the Oppressed Shareholder Statute, you may seek an injunction to stop the actions of the majority shareholders whether they're locking you out of the business or financially "squeezing" and oppressing you. Under this statute you may also seek the appointment of a receiver or a fiscal agent to provide important oversight of the day-to-day operations of your business.
Forced Buyout That Is Fair?
An additional right that the Oppressed Shareholder Statute may afford you relates to your ability to force a buyout of your shares or the sale of the business to a third party. It is also important to know that even if you are a fifty percent shareholder, depending on the circumstances, you also may qualify for the protections under the Oppressed Shareholder Statute.
To Learn more about your rights as a minority shareholder, partner or member, we recommend that you:
- ORDER: a Complimentary copy of Charles N. Internicola, Esq.'s book "The New York and New Jersey Partnership Dispute Guide"
- Learn More about shareholder and partner disputes by reading:
- CONTACT: Contact Mr. Internicola's staff at 800.976.4904 to schedule a conference call to see how Mr. Internicola will protect your interests and rights as a shareholder, member and partner.
- Take Your Business from Local Success to National Franchise with The 90 Day Franchise Launch Program
- An Entrepreneurs Guide to Purchasing a Business or Franchise
- ENDWISE: The Guide to Selling Your Business with Peace of Mind
- The New York and New Jersey Partnership Dispute Guide
- Franchise Counsel Program