Charging Orders Utah permits personal creditors of an LLC owner to obtain a charging order against the debtor-owner’s membership interest. A charging order is an order issued by a court directing an LLC’s manager to pay to the debtor-owner’s personal creditor any distributions of income or profits that would otherwise be distributed to the debtor-member. […]
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In Arwood v. AW Site Servs., LLC (Del. Ch. March 9, 2022), the Seller was approached by Buyer about selling the business. Seller “lacked the know-how or inclination to prepare financial records or to formulate useful valuations,” so Buyer requested, and obtained, “full and unfettered access to the businesses’ raw financial and other records” to use in
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Kevin was ready to sign a letter of intent to sell his business (“SellCo”) to a private equity firm, but he needed clarity on his after-tax proceeds from the sale. Kevin engaged me to represent him in the transaction to ensure that the terms were favorable and his after-tax proceeds were maximized. The private equity
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Protect your business, your reputation, and your employees. A Separation and Release Agreement is a contract between the Company and a departing employee (either a direct employee or an independent contractor). A Separation and Release Agreement minimizes the threat of litigation against the Company and protects the Company’s goodwill. Instructions to Employers Consideration A Separation
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Problem: the seller is under no legal obligation to disclose liabilities of the company to the buyer. Solution: the buyer requires the seller to make representations and warranties about the company. If the representation is inaccurate or the warranty is breached, then the seller is required to indemnify the buyer. A representation, commonly referred to
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The FTC’s 230-page final Rule applies to any person who sells, offers, charges, or otherwise markets a good or service with a “negative option feature,” which includes automatic renewals, continuity plans, and free-to-pay conversions, among others. (1) Prohibition on Misrepresentations: The final Rule prohibits sellers from misrepresenting any Material fact while marketing using negative option features—even if that
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