Professional Documents
Culture Documents
CHAPTER 1
BUSINESS ENTITIES - PARTNERSHIP
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I. INTRODUCTION TO PARTNERSHIP
A. RUPA In General
B. Definition
1. Types of Partnerships
2. Co-Owner Requirement
3. No Presumption
4. Share of Profits
5. Capital and Profit
II. PARTNERSHIP ENTITY ORGANIZATION
A. Requirements
1. Statement of Partnership Authority
2. Statement of Denial
3. Fictitious Name
4. Non-Waivable Provisions
B. Capacity
C. Formation Methods
1. Express
a. Statute of Frauds (SOF)
b. Contributions
c. Equal Capital Accounts
2. Implied
a. Sharing Profits
b. Other Situations
3. Estoppel
c. Not Compete
d. Account for Partnership Benefits and Property
2. Liability of Violating Partner
B. Profit and Loss Sharing
C. Management Rule
1. Majority Rule
2. Unanimous Approval
3. Outside Ordinary Course
D. Right to Books and Records
E. Information
F. Indemnification
G. Action by Partnership and Partners
V. LIABILITY TO THIRD PARTIES
A. General Liability
B. Agency Rules
1. Contract Liability
a. Ordinary Course
b. Not in Ordinary Course
2. Tort Liability
3. No Fault Partnership Liability
C. 1oint and Several Liability
1. Partnership Creditors
2. Partner`s Creditors
D. Conveyance of Partnership Property
1. Property Held in Partnership`s Name
2. Property Held in Individual Partner`s Name
3. Real Property Transfer
VI. PARTNER DISSOCIATION
A. Dissociation Events
1. Express Will
2. Expulsion
a. By Partners
b. 1udicial
3. Insolvency
4. Death of Partner
B. Wrongful Dissociation
C. Dissociation Effect
D. Purchase of Dissociated Interest
1. Price
2. Non-Agreement
E. Dissociating Partner`s Ongoing Liability
1. Authority Terminates
2. Two-Year Window
3. Statement of Dissociation
4. Prior Obligations
5. Partner`s Name
VII. DISSOLUTION AND WINDUP
A. Events Causing Dissolution
1. Partnership Agreement
2. Illegality
3. 1udicial Determination
B. Partnership Continues After Dissolution
1. Purpose
2. Participation
3. Liability
4. Statement of Dissolution
C. Distribution Priority
D. Settlement and Contribution Right
VIII. CONVERSION AND MERGERS
IX. LIMITED PARTNERSHIPS
A. Background / Formation / Records and Reports
1. Formation / Certificate of Limited Partnership
a. Name
b. Office for Records and Registered Agent
c. General Partner
d. Formation
2. Partnership Agreement
3. Annual Reports
4. Security Registration
5. Foreign Limited Partnerships
B. Limited Partners
1. Becoming a Limited Partner
2. No Power to Bind the LP
3. Limited Liability
4. Right to Information
5. Limited Duties of a Limited Partner
C. General Partners
CHAPTER 1
BUSINESS ENTITIES - CORPORATIONS
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I. INTRODUCTION TO CORPORATIONS
II. FORMATION PROCESS
A. Incorporator / Promoter
1. Fiduciary Status
2. Personal Liability
3. Undisclosed Principal
4. Compensation
5. Corporate Liability
B. Articles of Incorporation
1. Name Reservation
2. Contents
a. Required Information RINS
(1) Registered Office and Agent
(2) Incorporator(s)
(3) Name
(4) Stock Information
b. Optional Information - BICE
c. Compliance
3. Article Amendments
C. De Facto Corporations
1. Legislative History
2. Case Authority
D. Corporation by Estoppel
E. Organizational Meeting
F. Bylaws and Reports
1. Bylaws
2. Initial Report
G. Annual Report
H. Hierarchy of Authority
III. DOMESTIC OR FOREIGN STATUS
A. Nexus to State
1. Excluded Transactions
2. Fixed Facility
B. Consequences of Transacting Business
C. Effect on Legal Actions
D. Long-Arm Statutes
IV. CORPORATE LIABILITY
A. Registered Agent
B. General Liability
C. Purpose and Powers
1. Any Lawful Purpose
2. ~Ultra Vires
a. Application
b. Third Parties
V. DIRECTORS AND OFFICERS
A. Board of Directors
1. Elections Appointment
a. Cumulative Voting Rule
b. Removal
c. Replacement
2. Dividends
3. Board Meetings
a. Regular Meetings
b. Special Meetings
c. Voting Proxy
d. Action Without Meeting
e. Electronic Transmissions
4. Fiduciary Duties
a. Member Duties
b. Conflict of Interest - CUT
(1) Competing With Corporation
(2) Usurping Corporate Opportunity
(3) Trade Secret Appropriation
c. Interested Transactions
(1) Director Approval
(2) Shareholder Approval
(3) Applicability
d. Corporate Remedies
B. Officers
1. Corporate Officers
2. Dismissal and Fiduciary Duties
3. Annual Certification
C. Personal Liability of Directors and Officers
D. Business 1udgment Rule
1. Reasonable Reliance
2. Criteria Applied
E. Indemnification Agreements
1. Types of Indemnification
a. Mandatory Indemnification
b. Permissive Indemnification
(1) Standards
(2) Process
c. Shareholder Indemnification
d. Court Ordered Indemnification
2. Shareholder Report Requirement
VI. STOCK SHARES
A. Stock Subscriptions
1. Irrevocable for 6 Months
2. Requirements
3. Default and Forfeiture
4. Stock Warrant, Option, or Right
B. Payment for Shares
C. Negotiable Securities
1. Stock Restrictions
2. Transfer Details
3. Lost Certificates
D. Preemptive Rights
1. Washington Rule
2. Revised Act Provision
E. Other Definitions
1. Par Value and Stated Capital Eliminated
2. Authorized Shares
3. Outstanding Shares
4. Redeemed Shares
a. Cancellation
b. Treasury Shares
5. Preferred Shares
a. Cumulative Preferred
b. Participating Preferred
c. Convertible Preferred
VII. SHAREHOLDER RIGHTS
A. Meetings and Voting
1. Shareholder Meetings
2. Court-Ordered Meeting
3. Notice of Meetings
a. Time Requirements
b. Notice Waiver
4. Shareholder Lists and Resolutions
5. Voting in Person or Proxy
6. Quorum Requirements
7. Electronic Transmissions
8. Action Without Meeting
9. Voting Trusts and Agreements
10. Other Rights
B. Records and Financial Statements
1. Corporate Records
2. Financial Statements
3. Inspection Right
a. Written Demand
b. No Minimum Ownership
4. Corporate Refusal
C. Legal Remedies
1. Direct Action
2. Shareholder`s Derivative Action
a. Standing
b. Procedure
c. Legal Expenses
3. Business 1udgment Rule
D. Shareholder Decision Control
1. Ordinary Decisions
2. Fundamental Changes
E. Dissenter or Appraisal Rights
1. Right to Dissent
2. Procedure
3. Fair Value
4. Appraisal Value Contest
5. Minority Shareholder`s Relief
F. Dividends
1. Declaration
2. Relative Rights
VIII. SHAREHOLDER LIABILITY
A. General Rule
B. Statutory Liability
1. Subscription Agreement
2. Insolvency
a. Certain Distributions and Contributions
b. Statute Of Limitations
C. Equitable Liability
1. Concurrent Affiliates
2. Successor Affiliates
3. Pierce Corporate Veil - FAL
a. Fraud
b. Alter Ego
c. Loan Subordination
4. Estoppel
2. Administrative Dissolution
3. 1udicial Dissolution
a. Shareholder Suit - FOWD
(1) Fraud
(2) Oppression
(3) Waste of Assets
(4) Deadlock
b. Creditor Suit
c. Receivership or Custodianship
4. Statute of Limitations for Claims after Dissolution
XI. PROFESSIONAL SERVICE CORPORATIONS
A. In General
B. Requirements
1. Only Licensed Professionals
2. Professionals Disqualified to Practice
C. Prohibited Activities
1. Only Professional Services
2. Idle Funds Exception
D. Trade Name
1. Professional Ethics Control
2. Deceased Partner`s Name
3. Corporate Designation Requirement
E. Death of Shareholder
1. Requirement to Purchase
2. Price Determination
F. Shareholder Personal Liability Shield
1. Full Tort Liability
2. Dischargeable Contract Damages
CHAPTER 1
BUSINESS ENTITIES - LIMITED LIABILITY COMPANY
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I. LIMITED LIABILITY COMPANIES (LLC)
A. Formation, Tradename, and Registered Agent
1. Required
2. Office and Registered Agent
B. LLC Agreement
C. Management Authority
1. Managing Member
2. Third Party Notice
3. All Members Manage
D. Ownership Issues
1. Number of Members
2. Contributions
3. Distribution Allocations
4. Member`s Rights
5. Ownership Transfer
E. Member Transactions
F. Liability of Members
1. Member to Entity and Other Members
2. Contract Liability to Third Parties
3. Tort Liability to Third Parties
4. Professional LLCs
5. Pierce LLC Entity Veil
G. Dissociation
1. Events of Dissociation
2. Consent
3. Distributions to Dissociating Member
H. Dissolution, Windup, and Cancellation of the LLC Certificate of Formation
1. Dissolution
2. Windup and Distribution of LLC Assets
II. LIMITED LIABILITY PARTNERSHIPS (LLP)
A. Formation and Tradename
B. Contributions and Allocations
C. Professional Practices
D. Partners` Liability