News & Analysis as of

Corporate Counsel Corporate Governance Limited Liability Company (LLC)

Bradley Arant Boult Cummings LLP

The Potential Double Whammy: Will the Company Have to Pay the Legal Fees of Disloyal Former Insiders If the Company Sues Them?

In a real-life case of adding insult to financial injury, companies harmed by the disloyal actions of their former partners, officers, managers or employees (the “former insiders”) may also have to pay their legal fees when...more

Allen Matkins

Nevada Supreme Court Affirms Contemporaneous Ownership Requirement In LLC Derivative Action

Allen Matkins on

In a short order of affirmance issued last week, the Nevada Supreme Court affirmed a basic requirement of derivative litigation. J. McDonald Co. v. Tropical & Losee, LLC, 2022 WL 6833521 (Nev. Oct. 11, 2022).  The case...more

Allen Matkins

No Change Is Not An Option For 2023 LLC Filings

Allen Matkins on

In April, I wrote about AB 2431 which modifies the statement of information a statement requirement for LLCs.  In 2020, the legislature enacted AB 3075 (Gonzalez) to require that statements of information filed with the...more

Allen Matkins

When Will A Single Manager's Signature Suffice?

Allen Matkins on

California's Limited Liability Company Act provides that when an LLC is a  manager-managed limited liability company, as defined in Corp. Code § 17701.03(o), every manager is an agent of the LLC for purposes of its business...more

Allen Matkins

A Key Difference Between Corporate And LLC Buyout Rights That You May Have Missed

Allen Matkins on

Both the California General Corporation Law and the California Revised Uniform Limited Liability Company Act include provisions granting shareholders/members the right to avoid a dissolution of the corporation/LLC under...more

A&O Shearman

BUNDESTAG BESCHLIESST DAS DIREG – DEUTSCHLAND AUF DEM WEG ZUM DIGITALEN NOTARIAT (?)

A&O Shearman on

Was bereits in unserem am 28.04.2022 veröffentlichten Artikel angekündigt wurde, wird nun Realität – der Bundestag hat am Donnerstag, den 23.06.2022 nach halbstündiger Aussprache einen Gesetzentwurf der Bundesregierung zur...more

Allen Matkins

Whose Law Applies To LLC Alter Ego Claims?

Allen Matkins on

In a recent ruling, U.S. District Court Judge Dale A. Drozd applied California law to the determination of which law to apply to an alter ego claim...more

Bradley Arant Boult Cummings LLP

Converting a Corporation into an LLC Can Lead to Unintended Consequences: Don’t Convert to an LLC Without Careful Advance Planning

Corporations and LLCs both provide their shareholders and members with limited liability to operate a for-profit business, and while these two forms of business entities are similar in many ways, they also have some important...more

Bradley Arant Boult Cummings LLP

Beware of Risks Involved in Start-Up Company Investing: Avoid Red Flags When Making Private Company Investments

The “Great Resignation” as it has been called reflects the large number of employees leaving the traditional workforce, and many of those departing employees are leaving hourly or salaried positions to start their own new...more

Allen Matkins

Inspection When The Subsidiary Is A Limited Liability Company

Allen Matkins on

Section 1601 of the California Corporations Code grants any shareholder the right to inspect the accounting books, records, and minutes of board and shareholder meetings for a purpose reasonably related to the shareholder's...more

Allen Matkins

California Court Addresses Outside Reverse Veil Piercing Of Chimeric LLC

Allen Matkins on

Reverse veil piercing involves subjecting an entity to the liabilities of its owner. As Professor Bainbridge has noted, there are two types of reverse veil piercing...more

Conyers

Piercing the Corporate Veil, or ‘Alter Ego’ liability, in the Cayman Islands, Bermuda, and the British Virgin Islands

Conyers on

Creative attempts to ‘pierce the corporate veil’ sometimes come before the Courts of Bermuda, the British Virgin Islands, and the Cayman Islands. In some cases, an attempt is made to establish personal liability on the...more

Allen Matkins

Court Rules An LLC To Be An Unincorporated Association, But Is That Correct?

Allen Matkins on

Cal. Serv. Emples. Health & Welfare Trust Fund v. Greenbox Servs. LLC, 2021 U.S. Dist. LEXIS 93477 involved a plaintiff's attempt to serve a limited liability company.   After thrice failing to serve personally the LLC's...more

Allen Matkins

Slights Sees No Dualism In Corporate Form

Allen Matkins on

Professor Stephen Bainbridge and several others have taken note of Vice Chancellor Slights' recent consideration of "reverse veil piercing" in Manichaean Capital v. Excela Technologies, Inc., 2021 Del. Ch. LEXIS 100 . ...more

Wilson Sonsini Goodrich & Rosati

Anonymity Becomes Passé: U.S. Government Moves to Require Ownership Information for Corporations, LLCs, and Others

As directed by the Anti-Money Laundering Act of 2020, the U.S. government has initiated a rule-making process to require beneficial ownership information from certain corporations, LLCs, and other legal entities....more

Allen Matkins

How To Erase A Business Entity's Cancellation

Allen Matkins on

Sometimes people get confused and will file a certificate of cancellation or dissolution with the California Secretary of State when the entity has not dissolved, much less completely wound up its affairs.  The challenge then...more

Wilson Sonsini Goodrich & Rosati

2020 Delaware Corporate Law and Litigation Year in Review

The firm’s corporate governance practice is pleased to present the 2020 Delaware Corporate Law and Litigation Year in Review, which highlights the recent Delaware law developments that will be of most interest to our clients....more

Allen Matkins

LLC's Failure To File Cross-Complaint Dooms Derivative Action

Allen Matkins on

Although the members of a limited liability may file a derivative action, the right of action belongs to the LLC and not to the members themselves.  This fundamental principle had real consequences for the plaintiffs in...more

Flaster Greenberg PC

Tip for Avoiding Costly Business Litigation: Always Have a Strong Written Agreement to Govern Your Business

Flaster Greenberg PC on

As a career commercial litigation attorney, I have been asked by several people why I would write a column advising business people on how to avoid needing my services. That’s a good question for which I do not have a good...more

Allen Matkins

Attorney Representing LLC Does Not Necessarily Owe A Professional Duty To Co-Equal Owner

Allen Matkins on

An attorney who represents a corporation does not inevitably become the attorney for the corporation's stockholders. However, the Court of Appeal in Responsible Citizens v. Superior Court, 16 Cal. App. 4th 1717 (1993) held...more

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