By Andrew R. Schwartz | Published October 20, 2024 | Posted in Business Law | Tagged Tags: creditors, Derivative, Fiduciary Duties, Legal Remedies | Comments Off on Remedies for Breaches of Fiduciary Duties
Remedies for Breaches of Fiduciary Duties
Fiduciary duties are imposed on certain individuals in business organizations to act in the best interest of the organizations and their stakeholders and to prioritize those interests over their own personal ones. Fiduciaries include directors officers, and sometimes employees of a corporation, as well as partners in a partnership and members of a limited liability Read More
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What Recourse Do You Have as a Minority Owner Facing a Squeeze Out?
Disputes and conflicts often arise in small businesses with multiple owners. From time to time, we see majority owners use their inherent leverage to oppress the powers, rights and/or benefits of a minority owner (one with a non-controlling ownership interest in the business). In the worst case, the majority owners may try to “squeeze out” Read More
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How Co-Owners of Small Businesses Can Recognize and Respond to Business Oppression
If you own a minority interest in a small business, whether a partnership, limited liability company or corporation, you’re entitled to have your rights respected by those in effective control of the enterprise. Unfortunately, not everyone in your position is treated as fairly as they deserve. In Illinois, when majority owners of a business engage Read More
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Spotting the Badges of Fraud Under the Uniform Fraudulent Transfer Act
Winning a lawsuit lets you use court procedures to collect on your judgment. But what if the debtor suddenly claims they don’t have enough money or property to satisfy the debt? The debtor seemed financially healthy until very recently, but now claims poverty. That may signal one or more fraudulent transfers, which are acts of Read More
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Buyouts of Shareholders or LLC Members Alleging Minority Oppression
At the startup of a business, co-owners envision working together productively and profitably. But co-owners frequently encounter a serious impasse over business operations or corporate governance. When disputes arise that prevent the co-owners from doing business together any longer, one of more of them may need to exit the company through a buyout. This often Read More
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Forgiveness of $287M in Trump’s Chicago Tower Debt Raises Fraud and Tax Questions
The saga surrounding former president Donald Trump’s tax returns includes the revelation that, since 2010, his lenders have forgiven roughly $287 million in the debt that financed the Trump International Hotel and Tower in Chicago. The episode underscores the need for lenders to exercise the highest level of diligence when extending credit to borrowers with Read More
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Effective Debt Collection Strategies for Small Businesses
Client relationships are the lifeblood of your company. Employing well-structured billing procedures and an effective debt collection strategy can prevent interruptions to your cash flow while maintaining healthy client relationships. Billing procedures should include clear written communication of all credit advancement terms and repayment terms, including how often the company will bill the client, the Read More
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Minority Shareholders in Close Corporations May Have Fiduciary Duties
Corporate law provides shareholders protections. Officers and directors of a corporation owe shareholders a fiduciary duty — a legal obligation to refrain from putting their own interests ahead of the shareholders’. In a closely held corporation, majority shareholders usually hold or control the officer and director posts, which means they owe fiduciary duties to minority Read More
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Pending Illinois Legislation Would Further Limit Covenants Not to Compete
Illinois lawmakers are considering a measure to exempt more workers from restrictions on seeking new jobs after leaving an employer. The bill would add to the protections set out in the 2016 Illinois Freedom to Work Act, which bans covenants not to compete on certain workers. Both the IFWA and the proposed law follow a Read More
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Resolving Disputes Between Co-owners of a Small Company
Co-owners who had common goals when they started their business may find their paths veering in different directions as time passes. Whether it’s a clash in management styles or business plans, a dispute between co-owners of a small company can interfere with day-to-day operations and possibly imperil the company’s future. Swift and effective resolution of Read More
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