Posts Tagged ‘corporation’
Why a Sole Proprietorship or General Partnership is Very Risky
One of the most important reasons for forming any legal entity like an LLC or corporation to run your business is LIABILITY PROTECTION. I don’t need to tell you that a growing lawsuit epidemic is going on in the United States and it only appears to be getting worse. Statistics reveal that 1000′s of lawsuits » Continue…
How to conduct a special director's meeting
Why do you need a special, as opposed to the annual, meeting of directors? The annual meeting of directors occurs once a year, usually right after the annual meeting of shareholders. Any other meeting is generally called a special meeting of directors. The official business of the corporation is conducted by the directors when they » Continue…
How is the value of shares determined if someone wants to sell their shares or leave the corporation?
If the shareholders have planned for the event of someone leaving the corporation, the procedure or method for valuing shares will likely be set out in the bylaws, or a separate Shareholder’s Agreement or Buy-Sell Agreement. If shareholders wait until one of them decides to leave, it will likely be more difficult to reach an » Continue…
What happens if a shareholder decides to leave the corporation?
It is not uncommon in a small corporation for one of the shareholders (who is often also an officer and director) to leave the business. This could happen due to disagreements on running the business, health reasons, family issues, relocation, or one of many other reasons. If that happens, what do you do with the » Continue…
