Continuing the Family Business After Its Founder Dies

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Managing a family business is difficult enough when the founding generation is still alive. When the founders pass, however, the legal, business and family issues become much more complex because the adult decision makers that everyone relied upon, respected, and listened to, are gone. The children of Robert Smith – Mary, Josh and Matthew – …Read more

How Founders of New Companies Can Protect Against Personal Liability

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Starting a business can be the first step in a thrilling adventure, one that you have perhaps dreamed of for years. But as you start your venture you’re mildly terrified of the outcome. When launching a new business, budding entrepreneurs can hardly slow down long enough to do the bare minimum of forming the proper …Read more

Delaware Court Rules that Stockholder Right to Inspect Books is a Matter of “Internal Affairs”

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On August 13, 2020, the Delaware Court of Chancery issued an opinion in JUUL Labs, Inc. v. Grove, holding that a stockholder could not use Section 1601 of the California Corporations Code to inspect the books and records of a Delaware corporation because the “internal affairs doctrine” dictated that Delaware law must apply. The case arose when Daniel …Read more

Important Corporate Documents for a Successful Business Sale

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The last thing most founders think about when they start up a company is selling it. If one of the possible exit strategies is to sell your company, you should be thinking about the documentation you’ll need for a successful business sale from the very beginning. It may be years down the road but the …Read more

Tax Issues to Consider When Forming a California LLC

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Last week’s post discussed some important tax issues entrepreneurs should be aware of when forming and operating California partnerships. As we discussed, one of the most important factors to consider when forming a new enterprise is whether the business is initially expected to generate profits or losses and the tax consequences of those profits and …Read more

Management-Investor Conflict Can Lead to Costly Disruption of Business

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Unfortunately, it is not unusual for the owners of a privately held business – whether it be partners of a partnership, members of a limited liability company, or shareholders of a corporation – to become embroiled in conflict over management of the company.  This management-investor conflict can, at best, cause substantial disruptions to the operation …Read more

Startup Tip – Avoid Business Disputes with Effective Counseling

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A typical business startup usually begins modestly and all is friendly among those involved.  For example, two doctors, or two software engineers, might combine their efforts to form one or more medical groups (or software development companies) and find it advantageous to incorporate.  Each doctor/engineer contributes an equal amount of capital toward, and each receives …Read more

Favorable Settlement for Client Involved in Corporate Buyout Litigation

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Finkel Law Group recently represented several shareholders of a privately held commodities trading firm in a contentious buy out of departing shareholders who demanded several million dollars for their stake in the company.  As a result of the firm’s efforts, the departing shareholders ended up with one-third of their original demand. A critical factor in …Read more