News & Analysis as of

Nevada California

Allen Matkins

The One Where Everyone Got The Statute Wrong

Allen Matkins on

In yesterday's post, I discussed the Court of Appeal's unpublished opinion in Milks v. Affirmed Techs., LLC,  2024 WL 1502944 (Cal. Ct. App. Apr. 5, 2024), reh'g denied (Apr. 30, 2024).  That case involved claims against a...more

Allen Matkins

A California LLC Endures Forever, A Nevada LLC Not So Long

Allen Matkins on

California's Revised Uniform Limited Liability Company Act endows limited liability companies with a certain level immortality.  Corporations Code Section 17707.06(a) provides...more

Allen Matkins

The Importance Of Calling

Allen Matkins on

The validity of a board meeting hinges on three things - a quorum, notice and call.  Many lawyers focus on the first two and may overlook the third.   For California and Nevada corporations, the question of who may call a...more

Allen Matkins

Directors Removing Directors

Allen Matkins on

Seven years ago, I addressed the question of whether the board of directors of a California corporation could remove a fellow director...more

Allen Matkins

Can Shareholders Elect Corporate Officers?

Allen Matkins on

The classic model of corporate governance is that the board of directors appoints and removes the principal corporate officers.  This is consistent with the general principle that the business and affairs of a corporation...more

Allen Matkins

Don't Be Caught Inquorate! Some Key, But Subtle, Differences In California's And Nevada's Board Quorum Requirements

Allen Matkins on

California Corporations Code Section 307(a)(7) provides that a "majority of the authorized number of directors constitutes a quorum for the transaction of business".  Thus, if the authorized number of directors is 7 and there...more

Allen Matkins

When A California Corporation Converts To A California Limited Liability Company, What Happens To Its Nevada Business License?

Allen Matkins on

NRS 107.028(1)(d) requires that a trustee under a deed of trust be a "domestic or foreign entity which holds a current state business license issued by the Secretary of State pursuant to chapter 76 of NRS".   In Mahban v....more

Allen Matkins

In Nevada, LLC Membership May Survive The Grave

Allen Matkins on

The California Revised Uniform Limited Liability Company Act (RULLCA) provides that when a member who is an individual dies, the member dissociates from the limited liability company.  Cal. Corp. Code § 17706.02(f). ...more

Wilson Sonsini Goodrich & Rosati

Delaware's Status as the Favored Corporate Home: Reflections and Considerations

In recent months, a conversation has emerged as to whether Delaware should remain the favored state of incorporation for business entities. Indeed, many of our clients have asked us whether they should remain in Delaware or...more

Allen Matkins

Does The State Make Or Beget Corporations?

Allen Matkins on

To non-lawyers, a "person" is usually understood to refer to a human being.  At law, entities such as corporations and limited liability persons are often endowed with personhood.  See, e.g., Cal. Corp. Code § 18 ("'Person'...more

Allen Matkins

When California And Nevada Went To War Against Each Other

Allen Matkins on

I expect that most, if not all, readers are familiar with the American Civil War, sometimes referred to as the "War Between the States".  I suspect that few readers are familiar with another internecine war being waged at the...more

Allen Matkins

The Too Too Unpardonable Fault Of Conflating LLCs And Corporations

Allen Matkins on

Law Professors Samantha Prince and Joshua Fershee have recently completed an article on the importance of not conflating limited liability companies with corporations.  In An LLC By Any Other Name Is Still Not A...more

Allen Matkins

Nevada Enacts Law Permitting Correction Of Erroneous Corporate Filings

Allen Matkins on

In Chapter 9 of James Joyce's Ulysses, Stephen Dedalus proclaims "A man of genius makes no mistakes.  His errors are volitional and are the portals of discovery".  Alas, not every person filing a corporate record is a "man of...more

Allen Matkins

Nevada Enacts Changes To Stockholder Inspection Statute

Allen Matkins on

As mentioned earlier this week, Nevada's regular legislative session ended on June 6.  During the session, the legislature enacted, and the Governor approved,  AB 126  which makes numerous changes to Nevada's business entity...more

Allen Matkins

Is There A President AI In Your Corporation's Future?

Allen Matkins on

Artificial intelligence (AI) has attracted a great deal of attention of late.  Last week, for example, CNN headlined a recent story "Elon Musk warns AI could cause ‘civilization destruction’ even as he invests in it".  If AI...more

Allen Matkins

Nevada Supreme Court Holds Conversion Vests Converting Corporation's Nevada Business License In Converted LLC

Allen Matkins on

NRS 107.028 lists a number of different categories of persons who may serve as trustee under a deed of trust.  One category is domestic or foreign entity which holds a current state business license issued by the Secretary of...more

Allen Matkins

Supreme Court's Decision In Famous Hale & Norcross Mining Case

Allen Matkins on

Having read Professor Stephen Bainbridge's post about the origins of the judicial doctrine that directors must act on an informed basis, I passed along a reference to the California Supreme Court's in Fox v. Hale & Norcross...more

Allen Matkins

Why Alexander Hamilton Could Hold No Office In Nevada Or Even California

Allen Matkins on

I recently had occasion to inspect some of the county records in the "Million Dollar Courthouse" in Pioche, Nevada.  Among these records were the 19th Century oaths of office signed by persons entering into public office in...more

Allen Matkins

Here Is Something A Board Can Do Under Nevada, But Not California, Law

Allen Matkins on

The private corporation laws of both California and Nevada both authorize the formation of committees.  Cal. Corp. Code § 311 & NRS 78.125.  There are some differences, however.  California requires that any committee of the...more

Allen Matkins

Nevada Supreme Court Finds California Precedent "Persuasive" In Appeal Of Derivative Action

Allen Matkins on

What, if any, is the standing of a corporation in a derivative action?  Until this month, that question was yet to be addressed by the Nevada Supreme Court.  We now have an answer....more

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