News & Analysis as of

Operating Agreements Contract Drafting

DarrowEverett LLP

Strong Operating Agreement Is Best Defense (and Offense) For Founders

DarrowEverett LLP on

Founding a business with a partner is similar to getting married in many ways; it is a long-term commitment with your financial future and livelihood at stake. Unfortunately, business partners often stop getting along at...more

Roetzel & Andress

What’s in Your Operating Agreement? Legal Tips for Healthcare Providers

Roetzel & Andress on

This week on the HealthLawHotSpot, host Ericka Adler welcomes Roetzel shareholder Jonna Eimer to discuss the essential role of operating agreements in healthcare practices. Whether you're starting a new practice or reviewing...more

Troutman Pepper Locke

Private Equity and Delaware Law – Part One

Troutman Pepper Locke on

Troutman Pepper attorneys Chris Chuff and Taylor Bartholomew are well-versed in M&A transactions that involve Delaware law. In the first episode of this two-part series, Chris and Taylor discuss drafting considerations for...more

Farrell Fritz, P.C.

The “Unintended” Consequences of Not Having a Written LLC Operating Agreement

Farrell Fritz, P.C. on

CONGRATULATIONS!! You have just formed a New York limited liability company to purchase a piece of rental property with your cousin Vinny (no, not that Cousin Vinny) and his good friend Michael. Forming a limited liability...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

White and Williams LLP

Delaware Chancery Court Relies Upon Judicial Dissolution Power to Break Management Deadlock

White and Williams LLP on

Shareholder agreements and operating agreements contain a variety of knobs and levers, many of which a company’s founders hope never to invoke. Chief among them are the provisions for resolving disputes or deadlocks in...more

White and Williams LLP

The Dangers of Copy and Paste: Using Corporate Statutory Language in an LLC May Result in Unintended Consequences

White and Williams LLP on

Limited liability companies (LLCs) are famously referred to as “creatures of contract”, whereas the governance of a corporation is comparatively fixed by statute. When forming an LLC, the members have broad discretion to...more

Farrell Fritz, P.C.

Another Reason Not to Use Fixed Price Buy-Sell Agreements

Farrell Fritz, P.C. on

Before we get to the case: A fixed price buy-sell agreement is one in which co-owners of a business select a specific dollar amount, expressed either as enterprise or per-share value, for calculation of the future buyout...more

Sterne, Kessler, Goldstein & Fox P.L.L.C.

Navigating the Lifecycle of an Eponymous Brand (Part 2)

In this three-part series, we identified at least three distinct seasons in the lifecycle of an eponymous brand: (1) Choosing the Brand, (2) Commercialization, and (3) Legacy of the Brand. In Part 1, we discussed "Choosing...more

PilieroMazza PLLC

In a Business Owners Agreement, Should All Owners Be Equal?

PilieroMazza PLLC on

Good business planning involves owners of the company developing and entering into a shareholders agreement, operating agreement or partnership agreement (owners agreement). A good owners agreement will allow the owners to...more

Akin Gump Strauss Hauer & Feld LLP

Can You Replace Your Manager? Delaware Case Emphasizes the Importance of Carefully Considering LLC Agreement Provisions

Common sense might lead one to expect that a controlling stakeholder has the power to replace the manager of a limited liability company (LLC), but this might not be the case when the underlying LLC agreement provides...more

Brooks Pierce

It Depends On The Meaning Of The Word "With"

Brooks Pierce on

The contractual interpretation issue before the Business Court in Schultheis v. Hatteras Capital Investment Management, LLC, 2014 NCBC 23, turned on the meaning of the word "with." Well, actually on the phrase "entering into...more

Bilzin Sumberg

Revised Florida LLC Act Takes Effect January 1, 2014 For Newly-Formed LLCs

Bilzin Sumberg on

New Florida LLC Act Does Not Apply To Existing LLCs until January 1, 2015, Unless Prior Application is Elected - Effective January 1, 2014, the Florida Revised Limited Liability Company Act (the “New Florida LLC Act”),...more

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