Yes, taking excessive compensation can indeed violate a managing member or majority shareholder’s fiduciary duties. Case law supports this assertion. In Fleming v. Louvers International, Inc., the court found that a majority shareholder violated his fiduciary duties by taking excessive
Lubin Austermuehle, P.C.
The lawyers at Lubin Austermuehle, P.C. handle all types of internal disputes that may take shape during the course of a company’s formation, management, or dissolution. When it comes to managing a family business, for example, complications may arise that are perhaps unforeseeable. For instance, when spouses who co-own a company decide to divorce, the entity’s value as well as who retains ownership and managing responsibilities must be determined either through negotiations leading to an agreement or by a judge in court.
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Why choose Lubin Austermuehle for Business Litigation?
Choosing Lubin Austermuehle for business litigation comes with several advantages, particularly due to their experience and client-focused approach. Here are some key reasons why they are a compelling choice:
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Why Minority Owners Should Hire Lubin Austermuehle for Shareholder or LLC Member Oppression Cases in Illinois
In the complex and often contentious world of business, minority shareholders and LLC members can sometimes find themselves sidelined, oppressed, or unfairly treated. In such situations, securing legal representation that is not only skilled in business law but also deeply…
What constitutes LLC member or shareholder oppression in Illinois?
In Illinois, the concept of LLC member or shareholder oppression is generally conceived as actions that are “illegal, oppressive, or fraudulent”. For shareholders of a corpo”ration that has no shares listed on a national securities exchange or regularly traded in…
Non-Solication Agreements That Bar an Employee From Servicing Any Customer of a Former Employer are Generally Not Enforceable in Illinois or Subject to Discretionary Blue Pencilling
It is well settled that “Illinois courts abhor restraints on trade” and therefore “postemployment restrictive covenants are carefully scrutinized . . . because they operate as partial restrictions on trade.” McInnis v. OAG Motorcycle Ventures, Inc., 2015 IL App (1st)…
Can Punitive Damages be Awarded in Derivative Actions
Yes, punitive damages can be awarded in derivative actions, but these awards often come with certain conditions. Punitive damages are typically awarded when the tort committed involves fraud, actual malice, deliberate violence or oppression, or when the defendant displays willful…
Franchise Terminations: Defenses and Legal Representation
In the world of franchising, the termination of a franchise agreement can be a complex and contentious issue. Franchisees facing termination must understand their rights and the defenses available to them. Equally important is choosing the right legal representation to…
What are the Defenses to Libel and Defamation Claims in Ilinois
Under Illinois law, various defenses are recognized for libel actions. The first defense is the innocent construction doctrine. This doctrine posits that if a statement could be construed in a non-defamatory way, it cannot be considered defamatory.
Another defense is…
Understanding the Freeze Out or Squeeze Outs of Minority Owners in Illinois Closely Held Companies
In the business world of closely held companies in Illinois, minority shareholders often find themselves vulnerable to what is known as a “freeze out” or “squeeze out.” This blog post delves into this phenomenon, exploring what it means, how it…
Why You Should Choose Lubin Austermuehle for Trade Secret Theft or Non-Compete Matters
In the complex world of trade secret theft and non-compete litigation, having the right legal team on your side is critical. Lubin Austermuehle, with its strong online presence at www.thebusinesslitigators.com and www.l-a.law, stands out as a premier choice for…