Legal Question in Business Law in New Jersey

Hello

I am a 51.25% Owner a New Jersey company which is a Franchisee for 7-11.

Company was formed and started in 2007.

I had entrusted my partner with my initial expenses, which he reported $416000.

In spite of repeated requests, Till date he has not given me proper receipts for the expenses.

We have an initial agreement, which distributes shares based on this $416000.

But the agreement also says, if any time itís found that any partner cheated or misrepresented the company, then he must sell his shares to other partner at initial face value and get out.

Against our agreement, my partner also had involved his brother in the business, who stole case up to $50,000 by entering fake invoices.

We are supposed to deposit our daily sales - cash - into 711 corporate account.

My partner used to take this case and deposit a check from his other company.

This went on for nearly 1 year, maybe up to $70,000.

I have been afraid to take any action, as he is the registered Franchisee and I was a minority share holder .

But now Im 51.21% holder and fed up of him.

I also have proof now that he showed $87500 paid to 711, but only $63500 have been paid.

Is it too late to take action against him ?

As per our agreement, can I buy out his shares at initial face value ?

Please advise

Thank you.

Asked on 10/22/13, 1:23 pm

4 Answers from Attorneys

John Manfredonia Manfredonia Law Offices, LLC
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There are a lot of issues here. I have a few clients with 7-11 tenants so cannot discuss without a conflict of interest check first. Call me to discuss.

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10/22/13, 1:37 pm
Barry Kozyra Kozyra & Hartz, LLC
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0 attorneys agreed

This fact pattern presents a lot of potential issues. Our office has no conflict as to 7-11 but would need the identities of all involved and review the documents and history (with dates) to determine your legal rights.

If you are interested, please contact me to arrange for a confidential review of the issues.

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10/22/13, 1:52 pm
Robert Davies The Davies Law Firm, P.A.
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0 attorneys agreed

You have a huge problem and you need a good lawyer.

call me, come in and see me, and we will get started.

Robert Davies, Attorney

201 820 3460

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10/22/13, 2:08 pm
Barry Gartenberg Barry F. Gartenberg LLC
0 users found helpful
0 attorneys agreed

As I'm sure you can understand, there are far too many issues in your matter to meaningfully address in a brief email exchange. I routinely represent folks in situations like yours. I invite you to call me so we can have a brief conversation free of charge. 973-921-0600.

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10/23/13, 2:13 pm

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