Questions tagged [corporate-law]

The body of law about corporations, including mergers, acquisitions, corporate governance, corporate liability, finance, and bankruptcy. The fact that a question involves a corporation does not make it a corporate law question.

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68 views

What is the company structure that will effectively limit liability to the parent company, and not any of it's subdivisions?

I'm exploring different kinds of corporate structures. I'm in a unique situation where I have a very specialized construction industry but can operate under the blanket term "General contracting". ...
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1answer
80 views

CEO wants to step down to a VP position - when should board be notified?

Suppose a startup has three directors on the board, two co-founders and the main investor. The CEO (one of the co-founders) wants to step down and take a VP position. The CEO has started to have ...
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33 views

Law regarding associations around the world

In Sweden there is something called law of association/association law (associationsrätt). An association (that is the word used in Swedish too) in this context is any cooperation between people. It ...
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If you are the sole owner of an LLC and you sign a non-compete on behalf of the LLC are you bound to the non-compete or is the LLC bound?

I want to set up a business entity where I (CEO &/or sole owner) can sign non-competes on behalf of my business and not be personally bound to the non-compete. What's the right legal business ...
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1answer
53 views

Liability from conflict of interest

There are two co-owners, A and B, of a federal corporation C in Canada. B has a side job at a Canadian company D which has a non-compete clause in the contract. C and D do in fact compete. If a legal ...
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3answers
90 views

Why do large companies make legal battles public?

It would seem big companies try to keep litigation private and confidential. I guess this is so they can save face and it would like bad for business regardless of the outcome of the court may be. Is ...
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1answer
61 views

Buying a business in Germany

Therr is Person A with SoleTraderCompA and person B with no company. Person A wants to sell to B, B wants to buy. Both residents of Germany. How can this be processed? Transfer obligations etc. ...
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1answer
30 views

Can the same entity be a B Corp and an LLC, or an S-Corp and a C-Corp?

Fellow Lawfolk, In the United States, can a business file to be any one of the three combinations: LLC & B-Corp S-Corp & B-Corp C-Corp & B-Corp As in: Can you simultaneously be ...
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1answer
80 views

What is the legal principle which requires Apple to pay the Irish State €13 billion?

In 2016, the EU ruled that the Irish State provided state aid to Apple, which was deemed to be illegal. As a result of this, Apple are required to back-pay €13 billion to the Irish exchequer. From a ...
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3answers
65 views

If an American LLC buys something, do these expenses reduce their profits?

Imagine an American LLC which buys some commodity (e. g. gold) for every dollar that it owns (after taxes). At the end of the year, the company has 0 dollars in the bank (because all money was spent ...
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2answers
94 views

What happens to loans issued by a startup if the startup fails?

I live in the U.S. Suppose that I invest $50,000 in a startup company, signing "typical" paperwork for a 55% stake. The founder then uses the money to issue a $20,000 loan at a minimal interest rate ...
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1answer
51 views

What duties do U.S. organizations have to monitor foreign affiliates for practices that are illegal in the U.S.?

There is a U.S. based corporation with foreign subsidiaries/affiliates in "third world" countries. Let's say that some of these foreign organizations are engaging "locally" in practices that are ...
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1answer
28 views

What are the implications of US LLC state and foreign entities?

Let's say I'm a confetti enthusiast. Confetti for parties, confetti for halloween decorations, confetti for everything. In this hypothetical example, I want to sell confetti online, and in person when ...
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1answer
49 views

Can I use a corporation name that has been “Merged Out” as my new corporation name in California?

I did the search on California Secretary of State - Business Name site, and it shows the status as "Merged Out" (more than 20 years ago). I also searched the US Official Trademark Db site for the ...
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1answer
63 views

What happens if the officers of a company refuse to show up at board meetings?

Acme, Inc. is a California corporation. They have quarterly board meetings. To have a quorum, they need one of the officers to show up: the CEO, the CFO, etc. None of the officers are willing to ...
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51 views

Who is responsible for environmental clean up?

Suppose you bought a property that had serious environmental problems (lead, gasoline, etc.). An environmental authority calls you on it and orders you to clean it up. You bought the property ...
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101 views

Can a founder 'gift' pre-existing assets to a company after hiring a cofounder?

I live in the U.S. Suppose that I create a company with a deposit of $10,000 and want to bring in a cofounder for an equity stake of 15% in this company. I have personal assets like computer code, ...
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1answer
51 views

Legal status of corporate nondiscrimination policies

I work for an organization that has a standard nondiscrimination policy. They state that they are an Equal Opportunity Employer and list about 20 protected classes on the basis of which they ban ...
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1answer
103 views

Termination of the appointment of a non-executive Director

The majority of shareholders of Company incorporated in Cyprus, during an AGM, has elected a new non-executive Director to the Board. He then receives a letter of appointment materializing service ...
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2answers
60 views

Nonprofit Board did not send notice of annual meeting

What can the members of a Nonprofit Corp do if the Board did not send notice of the Annual Meeting? The Board held the Annual Meeting and voted themselves back into power without notifying the members ...
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2answers
75 views

Starting a business: is it legal to hire freelancers if you haven't registered the company yet?

The reasons I would want to delay the registration of this business as much as I can are: I don't foresee having a single dollar of revenue until at least 2 years later (the product I'm building is ...
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1answer
23 views

Who approves the creation of new shares in a Proprietary Limited Company?

I'm struggling to find a concrete answer for this. Who approves the creation of new shares in a Proprietary Limited Company? Is it the Board of Directors (through board resolution), or Shareholders (...
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2answers
32 views

Hold Harmless-Want on half of LLC and NOT self

I recently applied to a position to teach yoga, as an independent contractor. I have formed an LLC, and now the gym would like me to sign a hold harmless agreement. I want to make sure the LLC is ...
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1answer
130 views

Which laws apply on the world wide web?

This might be a very widely scoped question. I suspect by using common sense, that each country has different laws that might apply on internet use in that specific country. But nevertheless, I'm ...
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1answer
29 views

Is a stock power form the same as the stock purchase agreement?

From what I understand I need to complete the stock purchase agreement inoders to fully/legally own all shares in my company. I understand that I need to fill out some sort of form or create and sign ...
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3k views

How to interpret or parse this confusing 'NOT' and 'AND' legal clause

In the following legal clause: They shall not confer the right to attend any meeting of members and to exercise one vote for every share held. Does the NOT negates both ANDs as in: They shall ...
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126 views

Is it advisable for a person write his own contract if he is good in english but don't know legal jargon?

A lawyer scared me by saying, yes you can right your own contract but chances are most of your clauses won't hold in court cause you don't know legal jargon. However, I know english and my english is ...
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34 views

What does 'The Company' refer to in this proprietary ltmited company constitution?

I'm trying to understand who has the right to issue new shares in my proprietary limited company (wherther through board or general resolution). I found the following clause in the constitution: ...
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1answer
6k views

What's the difference between a share and a stock?

In my company constitution I found the following: At any time, the directors may allot and issue unissued shares subject to clause 8, or grant options over unissued shares, on any condition and ...
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1answer
48 views

Can a private company board of directors issue new shares?

If so, wouldn't this be unfair against shareholders as this would devalue their shares and voting rights?
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1answer
245 views

Do I need to register for Foreign Qualification in my situation?

I am wondering if or where I need to register for Foreign Qualification: I incorporated a company as a C-corp in Delaware. I work day-to-day and have set the official HQ of the corporation in Maryland....
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1answer
31 views

Where are Share Classes defined in an LLC?

Where are Share Classes defined in an LLC. For example, if I look at facebook's constitution at the link below, there are no definitions for share classes. I was thinking there would have been such a ...
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1answer
656 views

What laws protect minority share holders from having their share rights changed by special resolution?

A special resolution done by majority share holders can simply change the rights of certain shares and make them useless. They can reduce the share's voting rights or reduce dividend payment.
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1answer
143 views

What's the difference between Ordinary, Class A and Class B Shares?

I incorporated my company using an Online service. Not knowingly, I created class A, B and Ordinary shares during the incroporation. However, in the company constitution there are no mention of what ...
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1answer
54 views

What legal measures do venture capitalists employ to protect their investment in a startup? [closed]

Worst case founders can just run away with the money. They can also kick the VC rep from the board since they own majority share.
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1answer
40 views

Does the law sets requirements for what can or cannot be inside a Company Constitution?

This is for the best interest of share holders. Say someone puts an outrageous statement in the constitution, such as making a clause that he's a permanent director on the board. This is a general ...
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2answers
47 views

As a startup founder, what reasonable bylaws are commonly setup to maintain control of the board? [closed]

As a startup founder, what reasonable bylaws are commonly setup to maintain control of the board? This is to prevent hostile take overs, transfer of assets and etc.
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1answer
29 views

Can a company director simply appoint another company director?

I found the following article in my company constitution: The directors of the company may appoint a person as a director of the company. The company must confirm such an appointment by ...
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2answers
91 views

Ways to nullify a Golden Parachute founder? [closed]

The company founder who is utterly useless, set up a golden parachute agreement with the company. Basically, a hefty ammount is to be paid if he is terminated from the company. The ammount is ...
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1answer
56 views

Prevent IP from hostile transfer to another company

Our software company has a kick-ass product, which is the only thing of value to the company. What measures can I take to ensure the IP remains within the company? I have heard stories that a ...
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2answers
528 views

Can a foreigner setup an unstaffed company in United States?

Let's say that a foreigner wants to sell products or services in US using a company there to save his/her clients of importing his products/services. Yet this hypothetical entrepreneur does not stay ...
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1answer
140 views

Contract after Conversion

Company A an INC Became Company B an llc in 2014. Company B 18 months later brought in a contract from Company A having it signed By C 3 months later C stopped accepting Deliveries from B 1 year ...
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2answers
38 views

Setting up and running a limited company (UK) remotely (EU)

I would like to ask what are the potential pitfalls of setting up and running a limited company from a different country. In particular, the company would be incorporated in the United Kingdom, and I ...
2
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1answer
78 views

In the U.S., can corporations be formed under jurisdictions at levels lower than states?

I only hear of corporations being formed under the jurisdiction of a state. Actually, they seem to come into existence when they are listed in a registry of a state, district, or territorial ...
2
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1answer
54 views

Is a CEO of a company a de facto public figure?

In other words, does a CEO share the same protections as a private citizen against slander/libel if the CEO only appears to the public (in interviews, shows, etc.) as a representative of the company ...
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1answer
31 views

Do you have to pay capital gains tax on money earned before you incorporate?

This scenario is in the UK. A person X makes 1.2 million in sales of an asset, before the end of the tax year the invests all the sales into a newly created corporation and they become owners equity....
2
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1answer
215 views

ability to eat bacon as a job requirement

Let's say, I'm starting my own company and consider to hire some people. May I or may I not put the ability to eat bacon as a job requirement for every employee? If I did so, how many lawsuits would I ...
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2answers
109 views

What laws prevent a company from owning itself?

There are a few places around with people asking if "a company can own itself". However, I have not found any citations of actual law that prevents such an arrangement. Which specific laws or ...
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1answer
79 views

How can new villages and cities be formed or incorporated within various states? [closed]

What is the process for creating new villages and/or incorporating cities within the following states? Colorado Washington Pennsylvania Kentucky Missouri New Mexico
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33 views

Selling branded products

Legally speaking are individuals allowed to sell branded name products online, if not what are the consequences?