Category Archives: Business Law
Business disputes are not uncommon in business environments.
Business disputes are not uncommon in business environments. These include ethical issues related to finance and investment, disputes over intellectual property right, breach of fiduciary duty, conflict in employer-employee relation, and disputes related to insurance. In some cases, it is not possible to reach an amicable solution to such disputes through arbitration and negotiation…. Read More »
When D.C. Employers Use Criminal Records in Hiring
When you have a criminal record, it can be daunting to find a job. You might be surprised to learn that one in four Americans has been arrested. There is a stigma attached to a criminal history that can haunt an individual in his or her job search. Studies show that up to 92… Read More »
Tread Carefully with Director Conflicts
Corporate directors have a fiduciary duty to exercise their directorial powers in the best interests of the corporation rather than in pursuit of their own advantage. However, business deals are rarely a zero sum game. Situations frequently arise where a corporation’s decision to do business with a director in his or her personal capacity… Read More »
Special Issues When Taking on a Foreign Partner
Business has become increasingly cosmopolitan as the world seems to get smaller and smaller. Even small companies now often transcend national borders and draw both customers and investors from across the globe. Taking on foreign investors can often provide small and medium companies with a whole new world of opportunities and options for growth… Read More »
Stakeholder Rights During a Freeze Out
Unfortunately, the exuberance and camaraderie that usually comes with the formation of a new business venture does not always last. Relationships between the owners may sour over time or the ownership composition of the company may change entirely. Either situation can ultimately pit owner against owner and even lead to one faction of shareholder… Read More »
Shareholders’ Rights to Corporate Information
Shareholders in large corporations are typically passive investors who have little involvement with the actual management of the company. When it comes to smaller businesses, however, shareholders are much more likely to play an active role. Even shareholders who are not also board members or officers can still exercise considerable influence over a small… Read More »
The Role of Internal Investigations in Corporate Governance
In order to function, corporations must be able to govern and oversee themselves. Unfortunately, when the issue under review is the board of directors’ or other high-ranking managers’ conduct, self-governance can become more challenging. Without taking proper steps to ensure the integrity of such an investigation, it can often appear to be mere lip… Read More »
Derivative Litigation and Business Judgment
Corporate governance typically allows each shareholder to assert decision-making power proportional to his or her ownership stake in the company. However, under some circumstances a dissatisfied shareholder can cause significant problems for a company through a shareholder derivative suit. This is a process by which one or more shareholders initiate a lawsuit on behalf… Read More »
What Is an S Corporation and Why Would You Want One?
S corporation is a bit of a misnomer — it is not actually a distinct type of business entity. Rather, it is a tax option available under the Internal Revenue Code for certain domestic business corporations validly organized under state law. Typically, it is an option for relatively small domestic corporations. What’s more, the… Read More »
U.S. Supreme Court Rules that Severance Payments are Considered Wages
Quality Stores was in financial trouble in 2001 when it began offering its employees severance packages. The question presented in United States v. Quality Stores, Inc. was whether severance payments from employers to employees constitute “wages” under the Federal Insurance Contributions Act (FICA). FICA is a mandatory federal payroll tax imposed on employers and… Read More »
