Daily Archives April 14, 2015

Minority Shareholders – Fighting The Man

Minority Shareholders – Fighting The Man

by: Richard A. Chapo

Investing in a corporate entity is fairly standard practice in our society. Problems arise when you own a small percentage of shares, but disagree with the direction the majority shareholders are taking the entity. As a minority shareholder, do you have any way to fight “the man”, to wit, the majority shareholders?
Minority Shareholders
A couple of your friends come up with a great business idea, but need start-up capital. You agree to provide $10,000 for 30 percent of the shares. A corporation is formed, but the friends take the business in a direction you don’t like. What can you do?
The first step for a minority shareholder is to look at the bylaws of the corporation. If careful planning was taken when forming an entity, there should be clauses that detail your rights to object. If the corporation was formed through one of those $99 online sites, well…I wouldn’t hold out much hope. Heck, the entity may not even have bylaws!
If no relief can be found in the bylaws, a minority shareholder may be saved from themselves by their state. In every state, you will find legal codes laying out the rights of a “dissenting” shareholder. The laws are typically found in the “corporate” or “civil” codes, depending upon the state. Simply go to your local law library and ask a librarian for help.
Each state’s dissenter laws are going to be slightly different. Despite these differences, you should be able to find provisions that give a minority shareholder the right to throw a fit…err, seek justice. Generally, the dissenter rights are going to include some mechanism whereby you can force the corporation to buy back your shares.
While a “buy back” may sound great, it almost always lead to litigati...

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Get a Prenuptial Agreement before Your Next Marria

Get a Prenuptial Agreement before Your Next Marriage

by: Jeffrey Broobin

While signing a prenuptial agreement can be one of the all-time romantic turnoffs, for people heading into their second marriage, a prenuptial agreement can give the trade-off of a better relationship through the security of financial and life planning.
A prenuptial agreement is a legal contract between two people about to marry, specifying how assets will be distributed in the event of divorce or death. A prenuptial agreement is a good idea, even if you aren’t rich or own a home. It saves future arguments and can even save you money.
A prenuptial agreement requires that each partner prepare an inventory of assets owned before the marriage, and it allows you to establish your separate priorities about those assets.
Even if you do nothing more than that in your prenuptial agreement, this gives children from a previous marriage a chance to have half of that property and establish what belonged to Mom or Dad before the second marriage, and it establishes what you’re taking with you should you leave the marriage.”
Statistically, second or third marriages are more likely to result in divorce than first-time unions. Because of this, a prenuptial agreement is an especially wise idea.

A prenup is important if one of you is wealthier than the other.
If you have assets such as a house, stock or retirement funds, you should have a prenup.
A prenuptial agreement is essential if you own part or all of a business.
A prenup can discuss your wishes if you may be receiving an inheritance.
If you have relatives who need to be taken care of, such as disabled children or elderly parents, a prenuptial agreement is very important.
If you expect to receive a big increase in income because of a growing business,...

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7 Advantages to Incorporating

7 Advantages to Incorporating

by: Alex Goumakos

There’s no question that hard work and a little luck is what it takes to BE successful. But a little knowledge, especially when it comes to setting up your business, will help you STAY successful.
While many business owners give a lot of thought to location, store décor, customer service, hiring employees and management issues (and rightly so); choosing the proper business structure (such as sole proprietor, partnership, corporation, limited liability company) doesn’t get the attention it deserves. Many entrepreneurs don’t realize this, but the business form they choose can often times be the difference between success and failure, especially in today’s competitive and litigious marketplace. If you want to succeed, you need all the advantages you can get. High on the list of safe bets is the corporate form of business.
Incorporating, while definitely not for everybody, offers several distinct and money-saving advantages over the other types of entities. Here are seven of those advantages:
Asset Protection – If you operate as a sole proprietor or partnership, there is virtually unlimited personal liability for business debts or lawsuits. In other words should you go out of business or be a defendant in a lawsuit, your personal assets such as homes, jewelry, vehicles, savings, etc. are up for grabs. This is generally NOT the case when you incorporate. When you incorporate you are only responsible for your investment in the corporation. The limited liability feature of a corporation, while not a guarantee, is DEFINITELY one of the most attractive reasons for incorporating.
Easier To Sell – Corporations are generally much easier to sell and are usually more attractive to buyers than either a sole proprietorship or p...

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4 Tips to Help You Find a Reputable Mesothelioma L

4 Tips to Help You Find a Reputable Mesothelioma Lawyer

by: Robert Linebaugh

Mesothelioma is a rare form of cancer that affects the sac lining the chest (the pleura), the lining around the heart (the pericardium), or the lining of the abdominal cavity (the peritoneum). Studies have shown that people, who suffer from the disease mesothelioma, were exposed to an abundance of asbestos at one time or another in their life. Unfortunately, many people become exposed to asbestos unknowingly, usually as part of a job. Because of this, someone who has mesothelioma is often entitled to compensation. There are many mesothelioma lawyers, but the following easy tips can make it easier to find a mesothelioma lawyer.
1. Research all you can concerning mesothelioma. The more you understand the disease affecting you or a loved one, the better you will be able to judge a lawyer’s expertise. A lawyer who understands many aspects about the disease is the ideal lawyer. If your lawyer understands your or your loved one’s symptoms, and complications stemming from the disease, he or she will be better able to defend you. Unfortunately, some lawyers do not “do their homework” in regards to medical cases. This often leads to losing cases. A reputable lawyer will certainly know the ins and outs of the disease, so be sure to ask as many questions as you can think of.
2. Use phone books and Internet search engines to find lawyers. This may seem simple, but some people don’t bother taking the time to look through many lawyers. Accepting the first lawyer that calls, or that one sees on TV is not a good idea. Searching in Google for the keyword “mesothelioma lawyer” will yield better results in the end than simply accepting whatever lawyer comes along...

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9 Pros And Cons Of A Compensation Claim

9 Pros And Cons Of A Compensation Claim

by: Mohammad Latif

Making a compensation claim looks easy and a good idea in the beginning… but as time goes by, you discover the catches and fees. However, by that time its too late! Too late especially if the medical is done…
The claims culture arrived and it was chaos. Door canvassers and telesales, knocking and ringing constantly for an injury claim. Have you had an injury? Have you had an accident in the last 3 years? It went ballistic, new companies evolving and new tricks came into place that would work against you.
The 9 Pros and Cons…
The Salespeople
Avoid these people who stop you in the streets, shopping center or at the hospitals! They don’t give a damn about you and surely don’t give a toss what the outcome is, of your injury claim. They work on a commission basis.
The Agreement
Did you ever understand what was said before you signed the agreement? I guess not. ‘Don’t worry it doesn’t mean anything, the company will contact you and sort it out’. Did they ever? Today there is so much jargon, i.e. crap, out there that many people just ignore a claim for compensation even if they have an injury.
The Bank
In the beginning it was always a helping hand with your claim, until it was settled, with insurance and loan deductions. Policies were taken out in the thousands which back fired. And guess who provides the financially funded policies? The BANKS!
The Loan
A loan agreement to fund a claim is unnecessary, but the salespeople claim ‘otherwise it’s not possible to be compensated and you’ll have to fork out a couple of hundred upfront to get started’. However, the deduction is phenomenal as the interest accumulates over the period of the claim. It could last up to 2 years and it gets deducted from your compensation.
The BIG ...

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