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The Business Judgment Rule: Limited Protection For Corporate Decision Makers

Previously, I blogged about the “standing” requirements that must be satisfied if a shareholder or member of a corporation or other entity, like an LLC, wants to sue its officers, director or managers for mis- or malfeasance. That blog described the requirement for court certification that a plaintiff in such a derivative action adequately represents …

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GM outlines arbitration process for dealer reinstatement arbitration

By: Stephen P. Lagoy General Motors is prepared to proceed with a Congressionally-mandated program that will allow 2000 of GM’s closed dealerships to appeal the closure decision through an independent arbitration process. Dealers who want to file for reinstatement must do so through the American Arbitration Association and commence arbitration by Jan. 25. Under …

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GM and Chrysler Dealers Can Arbitrate

By: Donald C. Turner Was your dealership terminated by GM/Chrysler? The United States Congress, as part of a $1.1 trillion spending bill, has voted to give terminated General Motors and Chrysler dealers the right to challenge their terminations through arbitration. This legislation requires the arbitrator to balance the economic interest of the covered dealership …

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Car Dealers To Use Mediation and Arbitration

By: Stephen P. Lagoy Congress has approved a plan that would allow 2000 terminated car dealers to pursue third party mediation and arbitration with GM and Chrysler with the possibility of being reinstated. For an analysis of this alternative dispute resolution process and its chances of being successful, see http://online.wsj.com/article/. For more information …

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Piercing the Corporate Veil

By: Donald C. Turner Most closely-held businesses operate as either corporations, limited liability companies, or limited partnerships. There are many reasons for doing so, including tax implications. One of the primary reasons for operating in such a fashion is to protect the individual owners from personal liability for the obligations of the business enterprises. …

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Be Aware of Threshold Requirements for Mismanagement and Malfeasance Claims Against Managers and Directors

The economic conditions of the past two years have caused many shareholders or members of corporations and other entities to review management’s actions in a critical light. These reviews, almost inevitably, will result in claims for mismanagement or malfeasance that will lead to litigation. Both the plaintiffs and the defendants in these matters should be …

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