Legal Question in Business Law in New Jersey

Trouble S-corp

12 years ago, we formed a Delaware S-corp with 1 - 50% shareholder and 2 sharing the other 50% (28 + 22%). Now, the business does $80,000,000 yearly sales and there is a terrible rift between the the two 50% blocks. One side wants to grow more, the other wants to take s ome chips off the table. The board is deadlocked; there is no termination clause, no arbitration clause, and the 50% that wants to grow does not want to let the other 50% out of the deal. The agreement never contemplated that we would be this successful. How to resolve such a mess?


Asked on 4/13/08, 11:37 pm

1 Answer from Attorneys
Daniel Pepper Pepper Law Group, LLC

Re: Trouble S-corp

I believe another attorney suggested non-mediation to help resolve your situation. I too am a qualified mediator in NJ, and would be happy to discuss your options with you as well.

I would want to review your shareholder agreement, however, to determine what other options might be available to you and the other shareholders.

Of course, this post does not constitute legal advice and represents general information only.

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Answered on 4/14/08, 9:27 am


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