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Minority Shareholders

Bradley Arant Boult Cummings LLP

Preventing a Crash and Burn: Avoiding Future Business Divorces Through Company Governance That Addresses Minority Partner Concerns

Majority owners of private companies are empowered to exercise control over their businesses, but if they disregard the valid concerns of their minority partners, they may sow the seeds for a divisive business divorce in the...more

Bradley Arant Boult Cummings LLP

With Friends Like These…Exercise Caution When Adding New Business Partners

Money talks when the majority owners of private companies add new business partners who contribute additional capital. When these investors are high-powered PE firms or high-profile companies, with large balance sheets and...more

Stevens & Lee

Compare and Contrast: Key Differences Between the FTC’s Proposed Rule and Final Rule Amending Premerger Notification Requirements

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This white paper details the significant differences between the Federal Trade Commission’s Proposed Rule and recently issued Final Rule with respect to various premerger reporting requirements under the Hart-Scott-Rodino...more

Proskauer - Regulatory & Compliance

Countdown to 2025: New HSR Premerger Disclosure Rules

The Federal Trade Commission (“FTC” or the “Commission”) has announced a final rule (the “Final Rule”) significantly expanding the premerger notification and reporting requirements under the Hart‑Scott‑Rodino Antitrust...more

K&L Gates LLP

FTC Issues Final HSR Rules Transforming the Merger Review Process

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On 10 October 2024, the Federal Trade Commission (FTC) issued final changes to the rules implementing the Hart-Scott-Rodino Act (HSR). In announcing the final rule, the FTC stated that it is “responding to changes in...more

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Australia (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER AUSTRALIAN LAW - Companies - Corporate insolvency in Australia mostly involves a company being placed in liquidation or administration. Companies...more

Dechert LLP

Healthcare center investor saga: French court rules on minority shareholding by non-healthcare professionals

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In a decision dated September 12, 2024, the French Administrative Supreme Court (Conseil d’Etat) applied the principles established a year ago by the same court in the veterinary sector. The ruling was made in a summary...more

Walkers

The Benefits of Using Guernsey Companies

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Guernsey companies are extremely popular, and are used for a wide variety of purposes. Guernsey companies can be incorporated quickly and a large number of corporate services providers offer day-to-day administration...more

Maynard Nexsen

SBA Proposes to Amend its Negative Control Rule, Which Could Have Major Implications for Small Businesses and Minority Shareholder

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Recently, the Small Business Administration ("SBA") issued a proposed rule, which could significantly alter the status quo for permissible negative control. Impacted small businesses and their minority shareholders and...more

Morris James LLP

Minority Stockholder Was Not a Controller Because Plaintiff Did Not Adequately Plead Actual Control of the Company’s Business...

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It is axiomatic that directors and officers of a Delaware corporation owe fiduciary duties to stockholders (and the company). Controlling stockholders also owe fiduciary duties. A stockholder is deemed a controller either...more

Farrell Fritz, P.C.

Prudent Management or Financial Starvation: Can Minority Members Compel the Majority to Make Distributions?

Farrell Fritz, P.C. on

“It all started when the distributions stopped.”  In my travels as a business divorce litigator, I’ve seen many disputes between LLC co-owners that begin with that message.  A minority owner is content to remain a “silent...more

Farrell Fritz, P.C.

Summer Shorts: An Unusual Application of LLC Law § 608 and Other Decisions of Interest

Farrell Fritz, P.C. on

Welcome to this 14th annual edition of Summer Shorts. This year’s edition features brief commentary on three recent decisions by New York courts in business divorce cases. The featured cases involve a suit pitting three...more

Bradley Arant Boult Cummings LLP

My Partner Just Sued Me: Strategies Majority Owners Should Consider in Defending Claims Filed by Private Company Investors

Conflicts between co-owners in private companies are common, but the vast majority are worked out through dialogue and negotiation. When these internal conflicts cannot be resolved, however, minority investors may file suit...more

Winstead PC

Minority Owner Protection Provisions in Commercial or Mixed-Use Condominium Projects - July 2024

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To preserve the marketability of a commercial or mixed-use condominium unit sold to a third-party, it may be necessary to include specialized minority owner protection provisions in the condominium declaration for the...more

Bradley Arant Boult Cummings LLP

Opening Up the Business Partner Time Capsule: Partnership Lessons Shared by Owners and Investors

Hindsight can be a wonderful thing, especially if hard-earned lessons are adopted by others who are willing to learn from past mistakes. When private company owners and investors share with me some of the wisdom they have...more

Stinson LLP

FTC’s Aggressive Focus on PE Blunted by Recent Court Decision

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Private Equity (PE) has been a popular and frequent target of the Biden Administration’s recent antitrust enforcement efforts. Earlier this year, the Federal Trade Commission (FTC) and Department of Justice Antitrust Division...more

Knobbe Martens

Minority Owners of a Trademark Registrant, Who neither Use nor Possess Ownership Rights in the Mark, Cannot Seek Cancellation of...

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Appeal from the United States Patent and Trademark Office, Trademark Trial and Appeal Board. Summary: Parties that own minority shares in the trademark registrant, but do not separately use or possess an ownership right in...more

WilmerHale

“Roll Up” or Roll On Out: Court Dismisses FTC Lawsuit Against Private Equity Firm Welsh Carson Under Section 13(b)

WilmerHale on

In a decision with significant implications for private equity firms and minority investors, on May 13, 2024, the US District Court for the Southern District of Texas dismissed the Federal Trade Commission’s (FTC) suit...more

Walkers

New frontiers in cross-border disclosure orders

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On 24 April 2024, Doyle J handed down judgment in In the matter of New Frontier Health Corporation (Cause No. FSD 72 of 2022 and FSD 74 of 2022). In doing so, he refused the application of a Cayman-Islands incorporated...more

Goodwin

Navigating the Nuances: M&A Buyouts vs. Growth Equity Transaction

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As global markets continue to adapt to a new normal, a clear understanding of the structural nuances, risk considerations, and strategic objectives inherent in varying transaction structures enables investors to remain agile...more

Womble Bond Dickinson

FTC Claims Against PE Firm Put to Sleep

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The FTC’s recent campaign against private equity roll-ups hit a stumbling block on May 13 as the United States District Court for the Southern District of Texas tossed out the Federal Trade Commission’s antitrust claims...more

Dechert LLP

PE Firm with Minority Interest Defeats Antitrust Claim—But FTC Scrutiny of Roll-Ups Likely to Continue

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District court finds minority investors in companies accused of antitrust violations are not liable solely by virtue of holding a minority ownership stake. To obtain injunctive relief, the FTC must allege specific facts...more

Saul Ewing LLP

Minnesota Supreme Court Leaves the Law on Corporate Minority Beneficial Interest Buyout Rights Unsettled but Reaffirms Notice...

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Minnesota has a unique statute that allows minority shareholders in a closely held corporation to initiate an action for a buy-out of their interests. Minn. Stat. § 302A.751, subdivision 2. Under the Minnesota Business...more

King & Spalding

Bankruptcy Court Determines that Dividend Payments Permitted Under Subordinated Loan Agreement Are Not Fraudulent Conveyances

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On January 18, 2024, the U.S. Bankruptcy Court for District of South Carolina entered judgment, after a bench trial, in favor of minority shareholders of a debtor whose liquidating trust had sued to recover dividend payments...more

Alston & Bird

IRS Signals Increased Scrutiny of Deductibility of Success-Based Fees in M&A Transactions

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Our Tax Group sheds light on recent IRS rulings that disallow deductions involving success-based fees in M&A transactions. Contrary to common practice, the IRS recently ruled target companies could not deduct success-based...more

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