Throwing the baby out with the bath water is a pithy expression that suggests exercising caution when business partners in private companies are seeking to achieve a business divorce. The majority owner and the departing...more
3/19/2025
/ Arbitration ,
Asset Purchase Agreements ,
Business Disputes ,
Business Divorce ,
Buyouts ,
Dispute Resolution ,
Exit Planning ,
Exit Strategies ,
Investors ,
Majority Shareholders ,
Minority Equity Investments ,
Minority Shareholders ,
Minority-Owned Businesses ,
Shareholders ,
Valuation
Success is not just an elusive goal – it can also be difficult to maintain once achieved. For majority owners in private companies, achieving success is just the first hurdle, because once they arrive at this pinnacle, they...more
3/3/2025
/ Business Divorce ,
Buy-Sell Agreements ,
Corporate Governance ,
Employee Benefits ,
Employee Incentive Plans ,
Employees ,
Equity ,
Executive Compensation ,
Fiduciary Duty ,
Incentive Compensation ,
Limited Liability Company (LLC) ,
Private Equity ,
Shareholders
In recent years, the headlines have tracked the news of high-profile breakups among business partners in private companies. These business partner fallouts include:
- 2023: Sam Altman was ousted as Open AI CEO (for...more
1/14/2025
/ Business Disputes ,
Business Divorce ,
Business Entities ,
Business Partners ,
Conflict Resolution ,
Contract Terms ,
Corporate Governance ,
Exit Strategies ,
Fiduciary Duty ,
Investors ,
Partnerships ,
Prenuptial Agreements ,
Shareholders
Delaware Chancellor Kathaleen McCormick held again last week that the pay package that Tesla’s board of directors awarded to Elon Musk in 2018 suffers from “fatal flaws,” and it was therefore rejected. This was the second...more
12/10/2024
/ Business Ownership ,
Compensation ,
Corporate Governance ,
Delaware ,
Delaware General Corporation Law ,
Elon Musk ,
Financial Oversight and Management Board (Oversight Board) ,
Majority Shareholders ,
Shareholder Votes ,
Shareholders ,
Tesla
As the year winds down, majority owners can hit the ground running in the new year if they adopt business resolutions that motivate their executive group and create the potential for the company to reach new heights. The...more
12/13/2023
/ Board of Directors ,
Business Entities ,
Business Ownership ,
Corporate Governance ,
Corporate Management ,
Employees ,
Majority Shareholders ,
Managers ,
Minority Shareholders ,
Shareholders ,
Transparency