News & Analysis as of

Closely Held Businesses Corporate Governance

Warner Norcross + Judd

Warner Wins at Sixth Circuit Court of Appeals, Clarifying Directors’ Heightened Fiduciary Duties in Closely Held Corporations

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On Jan. 15, 2026, the U.S. Court of Appeals for the Sixth Circuit issued a published opinion in Boyd v. Northern Biomedical Research, Inc., clarifying the fiduciary duties directors owe to minority shareholders in a closely...more

KPMG Board Leadership Center (BLC)

On the 2026 board agenda: Private company considerations

Nothing is as certain as it was. Though initial public offerings and deals picked up in the second half of 2025, the direction of the economy and interest rates, the challenge of new technologies to existing business...more

Bradley Arant Boult Cummings LLP

Leveling Up in the New Year: Three Resolutions to Guide Majority Owners and Their Companies to Excellence in 2026

Doing the same thing generally produces the same result, and as the new year arrives, many business owners are considering new steps to help their companies achieve greater success in the year ahead....more

Bowditch & Dewey

Life Insurance, Buy-Sell Agreements, and the Connelly Problem: What Closely Held Business Owners Need to Know

Bowditch & Dewey on

Closely held businesses routinely use life insurance to fund buy-sell obligations when an owner dies. The logic is simple: the company or surviving owners need liquidity to effect redemptions or repurchases, and life...more

Sheppard Mullin Richter & Hampton LLP

Delaware Court of Chancery Holds that a Fiduciary’s Interpersonal Misconduct Resulting in Corporate Loss Does Not Necessarily...

Bad behavior in the workplace is in many instances a legal wrong that leads to legal consequences. Sexual harassment, for example, leads to consequences under tort and employment law. But if the perpetrator is a director or...more

PilieroMazza PLLC

Managing Litigation Risk During the Business Lifecycle, Part 7: Deadlock, Dissolution and Business Break-ups

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In the lifecycle of a closely held company—whether a limited liability company, a small corporation, or a joint-venture partnership—there are critical transitions that expose a business and its owners to considerable...more

Robson & Robson, P.C.

This Ain’t Football: Pa. Superior Court Lets A Receiver Call The Plays

Robson & Robson, P.C. on

I love endurance sports, and I work out incessantly. But I don’t watch sports or know much about them. Before hanging out with a group other men, I ask my wife to give me a summary of which local sports teams have recently...more

Farrell Fritz, P.C.

Bait-and-Switch Board Meetings? Delaware Court Says “Not So Fast”

Farrell Fritz, P.C. on

In a recent decision, the Court of Chancery of the State of Delaware addressed a dispute at a private Delaware corporation concerning the removal of two officers by the board under a notice of board meeting that the court...more

Farrell Fritz, P.C.

Second Department Ends Sisters’ Fight Over Family Home Not With a Bang, But a Whimper

Farrell Fritz, P.C. on

Four sisters. One house. Who owns it? Today’s case delves into a thorny situation many closely-held family businesses struggle with—proving ownership....more

PilieroMazza PLLC

Managing Litigation Risk During the Business Lifecycle, Part 6: Minority Stakeholder Interests and Oppression

PilieroMazza PLLC on

There is a common misconception that ownership equals control. But in many businesses—especially those participating in the Small Business Administration’s (SBA) 8(a), Women-Owned Small Business (WOSB), or Service-Disabled...more

Sheppard Mullin Richter & Hampton LLP

California Court of Appeal Holds That Derivative Litigation Settlement Procedural Rules Apply Even In Intra-Shareholder Suits in...

In Norman v. Strateman, No. A170356, 2025 WL 1802786 (Cal. App., 1st Dist., June 20, 2025), the California Court of Appeal held that a settlement of derivative claims reached among all shareholders of a close corporation was...more

Bradley Arant Boult Cummings LLP

Keeping the Family Harmony Playing Sweetly: Risk Avoidance for Owners of Family-Owned Companies

Business divorces take place in all types of private companies, including those owned and operated by family members. But families that are willing to engage in thoughtful planning can head off some of the internal conflicts...more

ArentFox Schiff

Boilerplate That Matters in Ownership Disputes: An Overview of Indemnification and Advancement Clauses

ArentFox Schiff on

Situations involving family dynamics, significant wealth, and fiduciary duties can be ripe for conflict. Disputes frequently arise among owners and managers of closely held businesses, family office constituencies, and other...more

Womble Bond Dickinson

Supreme Court Clarifies Shareholder Agreement Valuations for Estate Tax Purposes in Connelly v. United States

Womble Bond Dickinson on

Many co-owners of closely held businesses will employ life insurance as a tool for funding the transfer of ownership in the business upon the death or retirement of an owner. In these cases, planning involves the use of...more

International Lawyers Network

Establishing a Business Entity in Taiwan (Updated)

Introduction to Taiwan - In less than 50 years starting from 1949, Taiwan went from an agriculture-based economy to being an economic powerhouse and leader in the field of high-tech goods. Its Gross Domestic Product...more

Skadden, Arps, Slate, Meagher & Flom LLP

The Informed Board Podcast | CEO Succession Planning on a Clear Day

Succession planning for senior management should be an annual process, managed by the board. Our panel discusses best practices, including how to develop multiple and next-level candidates, how to keep internal candidates...more

Miller & Martin PLLC

Practical Advice for Family Business Succession

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Combining family issues with business considerations is enough to stress even the most thoughtful and successful business owner. The good news is that there are ways to reduce the stress in family business succession. The...more

Robson & Robson, P.C.

Prepare To Be Boarded! Yet Another Reason Closely Held Companies Should Consider Installing Boards Of Directors

Robson & Robson, P.C. on

For some owners of closely held companies, installing a board of directors may seem more painful than cutting off one of their pinkie fingers. They’d have to give up control of their business. They’d have to share...more

International Lawyers Network

Establishing A Business Entity In Taiwan (Updated)

Introduction to Taiwan - In less than 50 years starting from 1949, Taiwan went from an agriculture-based economy to being an economic powerhouse and leader in the field of high-tech goods. Its Gross Domestic Product (GDP)...more

Robins Kaplan LLP

Chambers V. Gold Medal Bakery: an Illustration of Privilege in Shareholder Suits

Robins Kaplan LLP on

When working well, a closely held corporation can be the model of corporate governance—a shared vision, a united board, and intimate trust between officers and shareholders. However, over multiple generations the growth of...more

Ward and Smith, P.A.

So You Want to Start a Business? 10 Legal Steps to Create a Successful Business Entity

Ward and Smith, P.A. on

Once you have a business idea, creating a business entity may seem daunting from a legal standpoint. However, setting up your business with thoughtful consideration and guidance will pay off over time, as you can...more

Royer Cooper Cohen Braunfeld LLC

The (Failed) Failing Business Exception: Stockholders’ Right to Vote on Asset Transfers

In Stream T.V. Networks, Inc. v. SeeCubic, Inc., the Delaware Supreme Court (“Court”) held that section 271 of the Delaware General Corporation Law (“D.G.C.L”), which requires stockholder approval for a Delaware corporation...more

Farrell Fritz, P.C.

It’s Time to Address Sex Discrimination Against Women Owners of Closely Held Companies, Say These Two Law Professors

Farrell Fritz, P.C. on

Longtime readers of this blog may recall a post I wrote three years ago titled Minority Shareholder Oppression in the #MeToo Era. The post highlighted an apparent first-of-its-kind decision in a judicial dissolution case...more

International Lawyers Network

Establishing A Business Entity In Taiwan (Updated)

Introduction to Taiwan - In less than 50 years starting from 1949, Taiwan went from an agriculture-based economy to be an economic powerhouse and leader in the field of high-tech goods. Its Gross Domestic Product (GDP)...more

Bradley Arant Boult Cummings LLP

The Minority Shareholder’s Arrows Are Still Sharp in the Quiver: Claims Available to Oppressed Minority Shareholders under Texas...

The seven-year anniversary of the Texas Supreme Court’s decision in Ritchie v. Rupee has come and gone, and the court’s holding from 2014 remains the law: Minority shareholders in Texas private companies do not have a cause...more

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