Legal Question in Business Law in New Jersey

Share holder in our corporation left & has decided not to return

We are a small corporation (three people) and after an argument, one of our members left. After allowing at least three full days for a cooling off period, we contacted him and left numerous messages as to when we could expect him to come back. Finally, after three days of calling without an answer, he called the business line and left a message stating he had decided not to come back. What should we do to protect our investments and how should we proceed?


Asked on 10/11/02, 10:42 pm

2 Answers from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Share holder in our corporation left & has decided not to return

Anything you do should only be done in conjunction with an attorney's consultation. You and the remaining shareholder should immediately meet with a lawyer and, through appropriate corporate steps, do what is necessary to buy out the interest of the one who left. In order to protect yourself contact a lawyer as soon as possible. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There certainly may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. You may want to contact an attorney at this time (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. If you call me, [856-546-8010] mention Law Guru and your first one hour consultation will be free. Good luck! Rob Gleaner

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Answered on 10/12/02, 3:59 pm
Ronald Cappuccio Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Share holder in our corporation left & has decided not to return

Shareholder disputes are costly and could end up destroying your business. You should immediately seek the counsel of a good business lawyer.

Do not be surprised if the disgruntled shareholder accesses the company bank accounts. business records, etc.

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Answered on 10/11/02, 11:46 pm


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