Governance & Management

Making smart decisions, within the boundaries of the law and ethical responsibility, allow business owners the flexibility they expect to successfully direct their company toward their daily, monthly, and ultimate goals. Intelligent business owners figure out how to use the tools and framework they have chosen to eliminate problems and risks, without curtailing their optimistic outlook for future success.

The Duty of Loyalty and its application for self-interested business decisions.

John is a 40% owner of XYZ Company with six of his good friends.  John is an entrepreneur and has many companies that do business with each other.  His ABC Company has the opportunity for a great business deal that will benefit both ABC and XYZ companies.  John is considered to be the controlling … [Read more...]

Do I as a majority stockholder have a fiduciary duty towards minority stockholders?

Lets say John is the majority stockholder and managing director of a small real estate firm that manages and supervises residential and commercial realtors.  Jane is the minority stockholder in the business, knows her way around the industry and thinks that the business has huge potential for growth … [Read more...]

How does a board of directors protect or benefit a business and what are their duties?

A board of directors is often found in the large corporate setting, but can also be found in smaller businesses.  The board is elected by the shareholders and is in charge of making the big picture, long-term decisions for the business.  The board in turn hires the officers of the company who run … [Read more...]

Why is the business judgment rule important and how can it help my business?

The business judgment rule is a presumption in the law that favors the board of directors or managers of a company.  The rule presumes that when making business decisions, those in charge have “acted on an informed basis, in good faith and in the honest belief that the action was in the best … [Read more...]

Why do I have to use “LLC” in my business contracts and in the advertising for my business?

Most states and jurisdictions have enacted some form of the Limited Liability Company Act.  This Act allows members of the LLC to limit the amount of risk that they subject themselves to personally.  LLC’s file articles of organization with state agencies in order to give notice to other entities of … [Read more...]