Kulzer & DiPadova, P.A.
76 E. Euclid Avenue, Suite 300
Haddonfield, New Jersey 08033-2342

P: 856.795.7744
F: 856.795.8982
E: info@kulzerdipadova.com

Shareholder Disputes

At Kulzer & DiPadova, P.A. we have extensive experience in dealing with disputes that can arise among shareholders, partners or members.

The Philadelphia and South Jersey community thrive because of entrepreneurs and small businesses that dedicate their time and energy to providing a variety of services to the area. Often times these businesses have been in the family for generations or are newly formed businesses created when individuals choose to follow their dreams.

At  the time individuals form a corporation, partnership, limited liability company, or other business entity,   each individual is optimistic about the future success of the entity. Unfortunately, as time goes by these same individuals, some of whom may be active participants in the business while others may only be investors in the business, may have different ideas to the governance of the business. Disputes can arise regarding, for example, shareholder, partner, or member  compensation, stock and membership interest values for buy-out purposes, acquisition of other companies, unlawful employment terminations, oppression of minority shareholders, breach of fiduciary duty, and breach of contract. These disputes can become particularly sensitive when the business is owned by family members or close friends, or when the death of an owner has caused the deceased owner’s interest in the entity to trigger a buy-out or transfer to another. In such cases, reaching an agreement between the parties regarding the valuation of the interest, continued management of the business, and future ownership of the business can be especially challenging.

At Kulzer & DiPadova, P.A. we have extensive experience in dealing with disputes that can arise among shareholders, partners or members. Our first suggestion is generally to attempt to resolve the dispute in an amicable and fair manner, especially where family is involved. If that cannot be accomplished we consider possible alternatives to costly and time-consuming litigation. These alternatives include mediation or arbitration. In those instances where resolution cannot be attained our attorneys are experienced in handling litigation regarding all types of shareholder, partner and member disputes.

The best way to avoid these disputes in the first place is to have a comprehensive and well-drafted shareholders’ agreement, partnership agreement, operating agreement, or buy-sell agreement in place at the time the business is formed. The attorneys at Kulzer & DiPadova, P.A. are experienced in drafting such agreements, and would be delighted to help your business grow or remain to be successful. Please see Business Transactions for more information.

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