Going into business with other persons and entities can be a financially rewarding endeavor. Although having business partners has its benefits, it is also not without risk. Even when partners go into business with the best of intentions, they may later come to disagree about important operational decisions or the direction of the business and end up mired in a shareholder or partnership dispute. These disputes can jeopardize the financial well-being and future of the business and its owners. 

If you and your business are facing a shareholder or partnership dispute in Bergen County or elsewhere in New Jersey, you should consult an attorney as soon as possible to protect your rights and interests. The lawyers of The Epstein Law Firm, P.A. can help you defend your financial stake and the future of your business. We understand how critical these disputes can be to businesses and their owners, so we treat each case with the full attention and urgency that it deserves. Our attorneys maintain extensive experience and knowledge in the law; we frequently present continuing legal education programs for our peers and maintain leadership positions with the New Jersey State Bar, New Jersey Association for Justice, and American Association for Justice. 

You can expect our legal team to bring the expertise and dedication your case deserves. Contact us today for a free case review to discuss how we can assist you in a shareholder or partnership dispute.

Types of Partnership and Shareholder Disputes Our Firm Can Help With

The Epstein Law Firm can help if you or your business find yourself facing the prospect of or find yourself in the midst of partnership or shareholder disputes such as:

  • Shareholder inspection of books and records – Shareholders have the right to inspect the books and records of companies they hold an interest in; these records may include board meeting minutes, resolutions of corporate action, accounting records, shareholder/partnership records, the bylaws, shareholder agreement, or partnership agreements of the company, and disclosure of lawsuits filed against the company.
  • Claims of minority shareholder oppression – This involves a controlling owner using their power to deny minority owners or partners the right to participate in the management of a company or to enjoy financial returns from their ownership interest. Examples include refusing to issue dividends and distributions from profits, diverting profits to excessive management compensation, removing minority owners from management positions, diluting minority owners’ interests, and misappropriating company assets.
  • Breach of partnership agreements – Partners in a partnership set forth their rights and obligations to one another in a partnership agreement; oftentimes, alleged breaches of partnership agreements include disputes over the transfer of ownership rights, obligations to recapitalize the business, and rights to distribution of company profits.
  • Breach of fiduciary duties of loyalty – Partners in partnerships and controlling owners of businesses owe fiduciary duties of loyalty and care to their fellow business partners. Claims of breach of these fiduciary duties allege that 
  • Actions for partition and dissolution of the company – Depending on the terms of the company’s governing agreements, partners or shareholders may have the right to demand a buyout of their ownership interest in the company or the partition and dissolution of the entire company. These actions are often brought when disputes over management and direction of the company cannot be resolved and interfere with the functioning or profitability of the company.

The Epstein Law Firm, P.A. Can Guide You or Your Business Through Difficult Disputes with or among Shareholders or Partners in Your Business

A shareholder or partnership dispute has the capacity to bring your business’s operations to a standstill. Resolving the dispute as quickly and favorably as possible will be key to ensuring the financial well-being of your business and your interests in the business. The attorneys of The Epstein Law Firm can help you or your business achieve a speedy resolution to the shareholder or partnership dispute you and your business are facing while asserting your rights and interests and fighting to get the outcome most favorable to you. You don’t have to let your hard work in building up your business be threatened by a protracted dispute among your business partners. Let our firm use our knowledge and experience to get you to an outcome that protects your financial interests and your business’s future.

Contact Us Today for a Consultation to Discuss the Details of Your Case and to Learn More about How We Can Help

If you find yourself or your business facing a partnership or shareholder dispute, The Epstein Law Firm can help you navigate to a favorable outcome in the dispute as efficiently as possible. Reach out to our firm to set up a case review to learn more about you and your business’s legal rights and options and to discuss the next steps in resolving a shareholder or partnership dispute. 

Frequently Asked Questions about Shareholder and Partnership Disputes in New Jersey

Will I have to go to court or trial to resolve my shareholder or partnership dispute?

Potentially. Many legal disputes settle before a lawsuit is filed; fewer still end up going all the way to trial. Most shareholder and partnership disputes are resolved by the parties before the matter ends up in a courtroom, usually through a negotiated settlement. Your partnership agreement or shareholders’ agreement may also require you to submit your dispute to alternative dispute resolution methods such as mediation or arbitration. Our firm can help you pursue a resolution to your dispute with the goal of avoiding the time and expense of litigation in court if that is your preference. Of course, we will always advise you when we believe going to court represents the best course of action in your case.

Can a party that doesn’t own a majority of the shares or partnership interest still engage in minority shareholder or partner oppression?

Yes. The controlling party of a company owes fiduciary duties of loyalty and fair dealing with their business partners. A party need not own a majority of shares or interest in a company to qualify as a controller. Instead, a party may qualify so long as they have the power to direct the management and operations of the company through any combination of ownership rights, contract rights, employment position, or fiduciary position.

Testimonials

Due to the complexity of our case, most attorneys were not interested. Not only did Michael Epstein take our case, but he was able to manage the situation towards a multi-million dollar settlement that was well in excess of our expectations. They are practical, business-minded attorneys who demonstrated their expertise with every interaction. Michael & his team worked tirelessly & aggressively on our behalf and brought our case to a successful outcome.

Andrew W.

Michael Epstein and The Epstein Law Firm recently obtained a multi-million dollar settlement in an extremely complex and difficult financial services case. He and his team not only mastered the complex issues in the case, but also expertly handled all aspects of the negotiations. I cannot thank Michael enough for his dedication and hard work, and I highly recommend him and The Epstein Law Firm for those who need smart, creative, and aggressive lawyers who put their clients’ interests first.

Brian G.

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