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Dissolution

Jones Day

FinCEN Clarifies Application of Beneficial Ownership Reporting Rules to Dissolved Entities

Jones Day on

Reporting companies should take note of a recent clarification by the Financial Crimes Enforcement Network ("FinCEN") that the Beneficial Ownership Information ("BOI") Rule requires reporting companies that exist on or after...more

Farrell Fritz, P.C.

Summer Shorts: An Unusual Application of LLC Law § 608 and Other Decisions of Interest

Farrell Fritz, P.C. on

Welcome to this 14th annual edition of Summer Shorts. This year’s edition features brief commentary on three recent decisions by New York courts in business divorce cases. The featured cases involve a suit pitting three...more

Patton Sullivan Brodehl LLP

To Moot a Statutory Buyout, LLC’s Dissolution Must be Valid Under its Operating Agreement

In 2022, The LLC Jungle covered the opinion Friend of Camden, Inc. v. Brandt in a post titled LLC Dissolution Vote Defeats Statutory Buyout. In the Friend of Camden case, the Court of Appeal held that an LLC membership vote...more

Faegre Drinker Biddle & Reath LLP

Entities That 'Cease to Exist' Must Still Comply With the Corporate Transparency Act

On Monday, July 8, 2024, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) released additional FAQs specifying that a reporting company (i.e., a company to which no exemption applies) created or...more

Farrell Fritz, P.C.

Did Chancery Court Just Crack Open the Door to Equitable Dissolution of LLCs?

Farrell Fritz, P.C. on

Delaware Chancery Court’s contractarian approach to all things LLC, embedded statutorily in Section 18-1101(b) of the Delaware LLC Act (“It is the policy of this chapter to give the maximum effect to the principle of freedom...more

Polsinelli

FinCEN Publishes Updated FAQs

Polsinelli on

Entities terminated in 2024 are required to file Corporate Transparency Act beneficial ownership information reports, as are administratively dissolved entities. The Financial Crimes Enforcement Network (“FinCEN”)...more

Morris, Manning & Martin, LLP

FinCEN Alert: Dissolution Before 2025 Won't Spare CTA Reporting Requirement

On July 8, 2024, FinCEN published additional FAQs regarding entities that have ceased to exist.  Unsurprisingly, entities that formally and irrevocably dissolved prior to the Corporate Transparency Act's effective date of...more

Mayer Brown

FinCEN Requires Reporting from Dissolved Companies

Mayer Brown on

On July 8, 2024, the Financial Crimes Enforcement Network (“FinCEN”) issued interpretive guidance explaining that the beneficial ownership information (“BOI”) reporting requirement applies to certain legal entities that have...more

Proskauer - Regulatory & Compliance

FinCEN Clarifies that Dissolved Entities are Subject to CTA Reporting Obligations

On July 8, 2024, the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) released additional FAQs with respect to the beneficial ownership reporting requirements of dissolved entities. The Corporate...more

Farrell Fritz, P.C.

Special Considerations for Law Firm Breakups

Farrell Fritz, P.C. on

Just a few weeks ago, I commented on a recent uptick in disputes centered on the breakup of professional services firms. In those disputes, we expect that the demands of the legal, accounting, and medical professions draw...more

Farrell Fritz, P.C.

Dissolution Undone

Farrell Fritz, P.C. on

Business divorce and non-judicial (a/k/a voluntary) dissolution of a business entity rarely intersect. But when they do, or even in a non-business divorce setting, if a business owner needs to rescind a certificate of...more

Fox Rothschild LLP

Business Court Gives Maggie Valley’s Ghost Town in the Sky More Time to Scare up Some Investors

Fox Rothschild LLP on

A member seeking to dissolve an LLC which owns a mothballed amusement park in Maggie Valley, North Carolina, didn’t have a “ghost of a chance” to close out a struggling, yet functional, company. In McClure v. Ghost Town in...more

Skadden, Arps, Slate, Meagher & Flom LLP

FAQs About the FTC’s Broad New Ban on Noncompetes

When the Federal Trade Commission (FTC) issued its long-awaited final rule banning virtually all noncompete clauses between workers and employers, it also published 500-plus pages of commentary....more

Fox Rothschild LLP

NJ Appellate Court Outlines LLCs' Path to Rescind Erroneous Certificates of Dissolution

Fox Rothschild LLP on

A recent New Jersey appellate decision underscores the need for the leaders of limited liability companies (LLCs) to consider how to eliminate the risk of fraudulent, inaccurate or mistaken filings by former members and...more

Levenfeld Pearlstein, LLC

How to Mitigate Post-Closing Risks to Facilitate Asset Distribution and Entity Dissolution

After a transaction closes, sellers often wonder: when can all proceeds be distributed and the selling entity be dissolved? This question can be complicated, particularly where there are surviving representations, warranties,...more

Farrell Fritz, P.C.

Termination, Adequate Alternative Remedies Sends Dissolution Proceeding Packing

Farrell Fritz, P.C. on

There are plenty of advantages to practicing business divorce litigation in New York.  The diversity of businesses and clients, complexity of agreements and transactions, and excellence of judges and attorneys make New York,...more

Allen Matkins

California's LLC Certificate of Cancellation - One Form That May Not Fit All

Allen Matkins on

The California Revised Uniform Limited Liability Company Act deals separately with the dissolution and cancellation of a California limited liability company and the cancellation of registration of a foreign limited liability...more

Conyers

Successful Restoration of a Voluntarily Dissolved BVI Co as a Company in Liquidation

Conyers on

On 5 February 2024, the Honourable Justice Paul Webster granted a restoration order (the “Order”) pursuant to section 218A of the BVI Business Companies Act (Revised Edition 2020) (as amended) (the “Act”), declaring the...more

Farrell Fritz, P.C.

The Legal Ramen-ifications of Dissolving a New York LLC Over Noodle Choices

Farrell Fritz, P.C. on

The last time we featured a notable decision on a claim for dissolution of a restaurant-operating LLC was in 2017, with a post by Frank McRoberts titled, “LLC’s Purpose Being Achieved?  Business Doing Fine?  Good Luck Getting...more

Morris James LLP

Chancery Orders LLC’s Dissolution as Sanction

Morris James LLP on

Kaufman v. DNARx LLC, C.A. No. 2022-0968-KSJM; C.A. No. 2022-0982-KSJM (Del. Ch. Dec. 29, 2023) (ORDER) - The Court of Chancery has broad power to address litigation misconduct....more

Fox Rothschild LLP

Amending a Complaint or Counterclaim for Divorce Remains Freely and Liberally Permitted

Fox Rothschild LLP on

A recently published decision of Saseeshkumar v. Venugopal confirms that a request to amend a Complaint and/or Counterclaim for Divorce can and should be freely permitted in the interests of justice. While the facts here are...more

Troutman Pepper

Michigan AG Dana Nessel Sues to Dissolve Detroit Landscaping and Snow Removal Companies

Troutman Pepper on

Michigan Attorney General (AG) Dana Nessel filed a lawsuit seeking injunctive relief and dissolution of several limited liability companies owned by John and Michele Church. The Churches’ companies have allegedly violated the...more

Obermayer Rebmann Maxwell & Hippel LLP

Annulment in Pennsylvania

Under Pennsylvania law, where a marriage is void or voidable, a party may bring an action in annulment rather than divorce. At first glance, that just sounds like semantics – however, there is a significant legal ramification...more

Farrell Fritz, P.C.

A Lifeline for the Stale “Schedule A”

Farrell Fritz, P.C. on

One need not peruse the pages of this blog for long to learn that its authors strongly advise against entering into an owners’ agreement that calls on the members to “annually” (or worse, “regularly”) update a critical aspect...more

Carlton Fields

Court Refuses to Compel Arbitration Based on Dissolution of Arbitral Forum

Carlton Fields on

The U.S. District Court for the Eastern District of Louisiana recently refused to compel arbitration on the ground that the arbitral forum had ceased to exist and that a purported replacement forum was not the same forum and...more

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