Legal Question in Business Law in New Jersey

Corporate dissolution in NJ

a family owned S corp in NJ which consists of several properties is being dissolved. I have lived with my family in one of the properties in the corp. for 40 years. I made several renovations including an addition and inground pool which was paid for with my personal money. It was always verbally aggreed to, that upon dissolution the cost of such renovations would be taken off the other shareholders amount, and I have the option to buy the house personally. Now my sister (a shareholder) has passed away and her children now contol her shares. They want the properties to be split equally. If I have the reciepts to prove the exact money I spent, do I have a case to take them to court?


Asked on 4/02/07, 5:30 pm

2 Answers from Attorneys
florence hessen florence f. hessen,esq

Re: Corporate dissolution in NJ

Hi:

This is a very thorny legal issue and has a whole host of ramifications. It really depends on what the corporate documents state, who is in control, whether you are a shareholder and in what %, if you lived in the home rent free was that to be considered, etc.

I am available for a short cost free consultation if you like and acquire my contact information from my profile.

In order to protect your interest you should speak with counsel.

Good Luck

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Answered on 4/03/07, 12:54 pm
Barry Kozyra Kozyra & Hartz, LLC

Re: Corporate dissolution in NJ

It depends on what the rest of the corporate documents say and, if nothing, it might be argued that your moneys in were a loan.

But do you risk opening the door for other issues, such as back rent?

You need to calculate the amount of your loan and weigh your claim against the risk of a counterclaim. This is best accomplished with the help of a lawyer.

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Answered on 4/02/07, 5:58 pm


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