Legal Question in Business Law in New Jersey

Re: Business partnership - shares

Your question is a bit contradictory and it is difficult to answer without having some points made clear. Partnerships don't have shares, corporations do. Limited liability companies have percentage interests. Each of them works in a slightly different way.

Frequently, businesses have agreements among the owners that govern new capital contributions and changes in ownership. Absent an agreement, the State may provide statutory guidance. So, it is necessary to know what form of business you are speaking of. Additionally, your question can't really be answered without knowing whether there is an agreement among the owners and, if so, what is says.

That said, there are two general rules that apply. First, one owner can't vote another out. While it is true that an owner's interest can be diluted by the sale of other ownership interests, the other owners can't simply vote someone out. Secondly, regardless of the form of the business, the law provides for the protection of a minority owner's interests. Whereas the majority owners can manage the business, they have an obligation to the minority owners not to deliberately disadvantage them.

If a majority owner has, as you said, taken all the money, both civil and criminal actions are conceivable.

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Re: Business partnership - shares

SOUNDS LIKE THIS IS A NEW BUSINESS? IS THERE AN OPERATING AGREEMENT AND, IF SO, WHAT DOES IT PROVIDE? THERE IS FIDUCIARY ACCOUNTABILITY BETWEEN THE PARTNERS, SO IT SEEMS THERE IS RECOURSE, BUT IT MAY REQUIRE LITIGATION. ALSO, IT SOUNDS LIKE YOU MAY BE AN ABSENTEE PARTNER, SO AN ACCOUNTING SHOULD BE SOUGHT AS WELL. YOU MAY NEED A LOCAL BUSINESS ATTORNEY TO ASSIST YOU.