Whether you are a director of a corporation or a shareholder in a corporation, it is important to know the duties owed to the corporation by directors. The two main categories of duties owed by directors to the corporation are the duty of care and duty of loyalty. The duty of care refers to the...
Whether you are a director of a corporation or a shareholder in a corporation, it is important to know the duties owed to the corporation by directors. The two main categories of duties owed by directors to the corporation are the duty of care and duty of loyalty. The duty of care refers to the...
Sometimes litigation is inevitable for corporations. There are many ways to prepare and combat any possible allegations. One such way is appointing a special litigation committee. These committees are most appropriate when facing allegations by individuals, mostly shareholders, within a corporation accuse the corporation of wrongdoing. In a typical scenario, a shareholder represents the interests...
One of the most important responsibilities of a corporation is to institute a good self-monitoring system. While the steps necessary to establish a good self-monitoring system can be found in another post, it is important to understand why a good self-monitoring system is necessary. Because there are so many aspects of the duties of care...
Congratulations on taking the steps to incorporating your company. Becoming a corporation has limitless benefits; chiefly, the opportunity to acquire expanded capital and limited liability. The steps involved in becoming a corporation in the eyes of the law can be tricky. It involves elaborate declarations and paperwork. Despite your best efforts to incorporate, things can...
As a business owner, you are tasked with many responsibilities. Chief among them, and probably the most important, is the ability to turn a profit for yourself and other investors. However, turning a long-term profit is never a simple and easy task. It is often a balancing act requiring you to weigh your social responsibility...
As a business owner, you have most likely delegated–or plan to delegate–certain tasks to employees or other individuals under your control. It is simply inevitable. It would be impossible to expect the business owner to take on all the work himself. More often than not, these agents will be given some discretion to conduct business...
Many business owners are under the impression that they don’t need general counsel services. They fail to understand the benefits, subscribe to certain misconceptions, or both. This could eventually cost the company a lot of money, stress, and frustration if it does face legal challenges later on. Here are four of the most common—and harmful—myths...