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Breaking Deadlock: The Advantages of Using a Chapter 7 Bankruptcy Trustee

January 5, 2022: Written by: Eric R. Perkins, Esq. and Justin S. Baumgartner, Esq.

In the event of a management deadlock among owners of a closely held entity with a limited number of shareholders, partners, or members, the non-operating owners often pursue a resolution of the parties’ management disputes through state court litigation. The simplest example of corporate deadlock involves a company with two co-owners who are equal (50–50) shareholders or members and can no longer agree on how to run or capitalize their business leading to major animosity and a lack of goodwill between the parties. In cases such as this, when the breakdown of the interest holders’ relationship is irreparable, an aggrieved shareholder or member who wants themself or their business partner(s) to exit the company, or to even wind up the company as a whole, may seek to accomplish his goals through the appointment of a state court receiver.[1]




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Erik Derr and David Frankel speak at NJSA Law Day

February 22, 2024 Erik Derr, Esq. and David Frankel, Esq. co-presented at the New Jersey Staffing Alliance's annual Law Day in Livingston, NJ covering the topic" An Overview of Employer Rights and Res

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