By Andrew R. Schwartz | Published April 22, 2023 | Posted in Business Oppression | Tagged Tags: business oppression claim, controlling interest | Comments Off on Resolving Business Oppression Claims Among LLC Owners
Resolving Business Oppression Claims Among LLC Owners
In many businesses, including limited liability companies (LLCs), partnerships, and “S” and “C” corporations, unequal ownership responsibilities and rights often result in significant tension and disputes. The majority owner (usually a person or group controlling voting rights) often directs business operations and makes policy decisions at the expense of the outvoted minority equity interest holder. Read More
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Piercing the Corporate Veil to Collect on a Judgment
A business often operates as a separate legal entity, such as a corporation or limited liability company, which protects its individual owners from personal liability for the company’s debts or obligations. The liability shield (called a “corporate veil”) encourages business investment by limiting the investors’ potential losses to the funds they put directly into the Read More
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Types of Fraudulent Transfers That Can Be Set Aside Under Illinois Law
Debtors commonly engage in fraudulent transfers to avoid paying debts or other obligations by using two related tactics. The first is to dissipate assets; the debtor transfers property to a friendly third party in an effort to keep the assets out of the creditor’s reach. The second tactic is to take on higher priority debt Read More
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Effective Use of Citations to Discover Assets in Complex Collection Cases
If someone owes you money but refuses to pay no matter how hard you press them, you must go to court and obtain a judgment to collect your debt. However, even then, some debtors refuse to pay up unless you take enforcement action. Collecting on the judgment requires that you know what assets the debtor Read More
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How Co-Owners of Small Businesses Can Recognize and Respond to Business Oppression
If you own a minority interest in a small business, whether a partnership, limited liability company or corporation, you’re entitled to have your rights respected by those in effective control of the enterprise. Unfortunately, not everyone in your position is treated as fairly as they deserve. In Illinois, when majority owners of a business engage Read More
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Illinois’ Pension Crisis Goes From Bad to Worse, Leaving Funds in the Lurch
Millions of fire and law enforcement officers, educators and other civil servants across the nation have devoted decades of service in the expectation that they will receive pensions when they’re ready to retire. But in Illinois, many pension plans are severely underfunded, threatening their ability to meet the needs of present and future pensioners. Trustees Read More
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Challenges of Enforcing a Confession of Judgment in Illinois
A confession of judgment clause may allow a creditor to seek a judgment immediately against the debtor if the debtor fails to pay an obligation. Confession-of-judgment clauses, by which a debtor waives most rights to contest a debt, often appear in contracts, promissory notes, guaranties and other agreements. Signing a confession-of-judgment clause may help a Read More
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What Assets Are Protected From Creditors’ Collection Actions?
Creditors seeking to execute on debtors’ assets to collect on judgments face legal limits under Illinois law, which lets a debtor claim certain types of property as exempt from enforcement of a judgment, wage deduction order or other collection measure. A creditor’s attorney must conduct a thorough examination of a judgment debtor’s assets to determine Read More
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Spotting the Badges of Fraud Under the Uniform Fraudulent Transfer Act
Winning a lawsuit lets you use court procedures to collect on your judgment. But what if the debtor suddenly claims they don’t have enough money or property to satisfy the debt? The debtor seemed financially healthy until very recently, but now claims poverty. That may signal one or more fraudulent transfers, which are acts of Read More
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Buyouts of Shareholders or LLC Members Alleging Minority Oppression
At the startup of a business, co-owners envision working together productively and profitably. But co-owners frequently encounter a serious impasse over business operations or corporate governance. When disputes arise that prevent the co-owners from doing business together any longer, one of more of them may need to exit the company through a buyout. This often Read More
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