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When Terminating Officers in the Family-Owned Business, Follow the By-Laws

A Minnesota Appeals Court recently ruled that a father could not terminate his son as the president of the family-owned business because the father did not have authority to do so under the company’s by-laws.  Call v. Call,...more

Court Orders Family-Owned Business to Hold Annual Shareholder Meeting

Corporate shareholders with voting shares have the right to elect a corporation’s directors. Elections typically occur at an annual shareholder meeting. ...more

Corporate Formalities Matter in the Transfer of Shares of Family-Owned Businesses

Shares in family-owned businesses are often transferred between family members, whether through a sale or gift during a shareholder’s lifetime or through inheritance after an owner’s death. The parties to such a transfer...more

What corporate records do family businesses need to provide to their shareholders?

In family businesses, disputes may arise concerning access to company information. Owners who work day-to-day in the business typically have unfettered access to this information, while passive shareholders may feel they are...more

Do “Corporate Formalities” Matter in Family Businesses?

Family owned corporations are subject to the same statutory requirements regarding entity governance as non-family owned businesses. Thus, in order to fully comply with the applicable statute for the state where the business...more

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