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December 2014 Archives

Steps a trustee can take to protect a bankrupt estate from fraud

If you are a bankruptcy trustee, then you have a fiduciary duty to creditors and debtors. That being the case, a mistake at any point in the process could expose you and the bankruptcy estate to liability. Because bankruptcy law and procedure are very complex, it is important for bankruptcy trustees to have legal guidance to ensure that all duties and obligations are met.

What are the benefits of an LLC?

When you're starting a business, the decisions you make early in the process are extremely important because your choices now will have effects throughout the life of the company. You'll have to decide how the business will be structured, and the type of entity you choose will have a bearing on a range of matters, including taxation, personal liability and division of profits.

NINTH CIRCUIT EMBRACES THE PURE DOMINION TEST FOR INITIAL TRANSFEREE STATUS UNDER 11 U.S.C § 550

In Mano-Y&M Ltd. v. Field (In re Mortgage Store, Inc.), 2014 U.S. App. LEXIS 22981 (9th Cir. Haw. Dec. 5, 2014), the Ninth Circuit explicitly rejected the control test's flexible, equitable approach and embraced the pure "dominion test" adopted in Universal Serv. Admin. Co. v. Post-Confirmation Comm. of Unsecured Creditors of Incomnet Commc'n Corp. (In re Incomnet), 463 F.3d 1064, 1071 (9th Cir. 2006). In so doing, the Ninth Circuit clarified that the touchstones in the Ninth Circuit for initial transferee status are legal title and the ability of the transferee to freely appropriate the transferred funds. The Court explicitly rejected the reasoning in McCarty v. Richard James Enters. (In re Presidential Corp.), 180 B.R. 233, (9th Cir. B.A.P. 1995), insofar as the Bankruptcy Appellate Panel's ruling conflicts with the pure dominion test articulated in Incomnet

Have M&A data hacks been done to facilitate insider trades?

Mergers and acquisitions can do a lot for a company's bottom line. As we have noted in past blogs, where the facts indicate two businesses working together can perform better and the value of each can be increased, combining forces may make sense.

California employment law bill would require double pay on holidays

We recently discussed a number of changes in California employment law that will take effect in 2015. One of the major changes requires employers to provide paid sick leave to qualifying employees. On the heels of that legislation comes another proposal that would mandate double pay for workers on Christmas and Thanksgiving.

Shulman Hodges & Bastian LLP: Representing creditors and committees

Bankruptcy and other insolvency-related matters can be extremely complex, especially if there are many parties involved. Whether you're a creditor, debtor or trustee, a single slip-up could expose you to costly liability, and it is crucial that you have experienced legal counsel to identify the important issues and aggressively protect your interests.

Protecting intellectual property: The university connection

If you're an entrepreneur in California, then you're undoubtedly aware of the abundance of potentially profitable technology being developed throughout the state. Much of the research that leads to ground-breaking technology happens at universities, and many tech startups find great success in transferring patented technology from the university to the marketplace.

New employment law requirements for CA businesses take effect in 2015

Starting in 2015, employers in California will have to comply with a number of new laws. One of the major changes comes in the Healthy Workplaces, Healthy Families Act of 2014. The law requires that employers give qualifying employees paid sick leave.

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