Legal Question in Business Law in New Jersey

I am 50% owner in an S-corp. I am the treasurer and Secretary but my partner is trying to run the business like she owns it completely. We no longer have a civilized relationship. The business is 1 year old and I have never gotten a penny from it for myself. My partner is bouncing checks left and right and Overdrawing the bank account every month. I believe the money is going to her personal account and she is paying bills of the business from there and telling everyone that the business is not making money and she is dipping into her own personal funds and I am not helping out. I can prove the business made money in the first 3 months of operation before she took over the finances. Also, recently my partner brought in some additional equipment into the business and when I asked about it she said it was purchased with her own money and it�s not part of the business even though they are actively used in the business.

My questions are:

1) Can I buy my partner out if she is unwilling to sell?

2) How do I determine the value of the business?

3) Does it matter how much assets each partner puts into the business if it is not written in the contract?

4) Will the assets split 50% regardless of who puts what?

5) Should there be compensation for the partner who chose the name of the business if they decide to leave the partnership and the business remains under the same name?

6) Do I have a case for embezzlement?

7) Are all the physical assets on the business premises considered part of the business if they are being used by the business? What if I did not purchase some of those equipments, will they be considered in distribution if the business dissolves?


Asked on 10/29/09, 4:48 pm

3 Answers from Attorneys
Jef Henninger, Esq Law Offices of Jef Henninger, Esq.

You need to sit down with an attorney. I'd be happy to refer one to you. Just drop me a line.

Read more
Answered on 11/03/09, 5:02 pm
Randall Brett Law Office of Randall P. Brett

I agree with Mr. Henninger. Your questions are too complex to answer in this forum. You should look for an attorney that has experience in business law and representing small business owners.

Read more
Answered on 11/03/09, 7:25 pm
Robert Davies The Davies Law Firm, P.A.

You have a huge mess on your hands. You will need a lawyer's help to sort this out.

You will not be able to change this situation unless you take forceful action. A big problem is that you do not know what is going on in the business. She may even create debt that YOU will have to pay!

I have done several cases like this, and I can help you. Please give me a call to talk it over. The telephone discussion will be free of charge, and I will let you know what I believe I can do to assist you further. My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.

Disclaimer: This answer is based only on the statements you have made, and may not be accurate. Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.

Read more
Answered on 11/04/09, 9:26 am


Related Questions & Answers

More Business Law questions and answers in New Jersey