- A primary claim for shareholder oppression is termination of employment.
- “A minority shareholder’s loss of employment within a closely held corporation can be particularly harmful because a job and its salary are often the sole means by which shareholders receive a return on their investment in the corporation.”
- The NJ Supreme Court has ruled that at-will employment is permissible in NJ and employers and employees have the freedom to contract for a different employment relationship.”
The courts have generally concluded that shareholder-employees must look to employment agreements with the corporation as (essentially) principle protection against the loss of employment in an oppression scenario: “For employment terminations that fall short of NJ discrimination laws and other employee protection, however, the principles of at-will employment compels shareholders to contract for any desired employment assurances in their shareholder agreements.”
To discuss your NJ shareholder matter, please contact Fredrick P. Niemann, Esq. toll-free at (855) 376-5291 or email him at email@example.com. Please ask us about our video conferencing or telephone consultations if you are unable to come to our office.
By Fredrick P. Niemann, Esq. of Hanlon Niemann & Wright, a Freehold Township, Monmouth County, NJ Shareholder Attorney