Law Commons^™

Defending Worldwide Taxation With A Shareholder-Based Definition Of Corporate Residence, J. Clifton Fleming Jr., Robert J. Peroni, Stephen E. Shay

BYU Law Review

This Article argues that a principled, efficient, and practical definition of corporate residence is necessary even if some form of corporate integration is adopted, and that such a definition is a key element in designing either a real worldwide or a territorial income tax system as well as a potential restraint on the inversion phenomenon. The Article proposes that the United States adopt a shareholder-based definition of corporate residence that is structured as follows: 1. A foreign corporation is a U.S. tax resident for any year if fifty percent or more of its shares, determined by vote or value, was …

Competitiveness, Tax Base Erosion, And The Essential Dilemma Of Corporate Tax Reform, Kimberly A. Clausing

BYU Law Review

Label contradicts reality for the U.S. international corporate tax system. The U.S. system is typically labeled as a worldwide tax system with a statutory rate of 35%, both uncommon features among our trading partners. Yet these markers of the U.S. tax system do not accurately describe reality, where multinational firms routinely face far lower effective tax rates and little, if any, tax is collected on foreign income. Understanding this discrepancy between label and reality is essential to evaluate recent policy debates surrounding corporate inversions and the competitiveness of the U.S. international tax system. Although there is an essential policy tradeoff …

Inversions, Related Party Expenditures, And Source Taxation: Changing The Paradigm For The Taxation Of Foreign And Foreign-Owned Businesses, Julie A. Roin

BYU Law Review

The disconnect between the rules for the taxation of domestic businesses and foreign and foreign-owned businesses operating in the United States both diminishes the federal treasury and distorts taxpayer and business behavior. Yet bringing the sets of rules into closer coordination is no simple task. This Article examines many of the solutions proffered in the academic literature and details the difficulties and trade-offs that each entails.

Dashboard Compliance: Benefit, Threat, Or Both?, James Fanto

Brooklyn Journal of Corporate, Financial & Commercial Law

This Article poses the basic question that is reflected in its title and that was the subject of the conference where the Article was initially presented: whether technology poses any threats to the mission of compliance and the position of compliance officers, whether it is just another useful tool for them, or whether it is something of both. It begins by explaining the origin of compliance in broker-dealers and investment advisers and its important current position in those firms. It then discusses why compliance officers have always been drawn to technology, particularly to keep up with the business sides of …

The Question Concerning Technology In Compliance, Sean J. Griffith

Brooklyn Journal of Corporate, Financial & Commercial Law

In this symposium Essay, I apply insights from philosophy and psychology to argue that modes of achieving compliance that focus on technology undermine, and are undermined by, modes of achieving compliance that focus on culture. Insisting on both may mean succeeding at neither. How an organization resolves this apparent contradiction in program design, like the broader question of optimal corporate governance arrangements, is highly idiosyncratic. Firms should therefore be accorded maximum freedom in designing their compliance programs, rather than being forced by enforcement authorities into a set of de facto mandatory compliance structures.

Business Associations, Edward P. Bonapfel, E. Bowen Reichert Shoemaker

Mercer Law Review

This Article surveys notable cases in the areas of corporate, limited liability company, partnership, agency, and joint venture law decided between June 1, 2015 and May 31, 2016, by the Georgia Supreme Court, the Georgia Court of Appeals, and the United States district courts located in Georgia.

Freedom Of Corporate Purpose, George A. Mocsary

BYU Law Review

No abstract provided.

The Andean Foreign Investment Code: An Overview, Lloyd Pike

Georgia Journal of International & Comparative Law

No abstract provided.

Rethinking Article 422: A Retrospective On Ecuador's 2008 Constitutional Isds Recalibration, Alexander B. Avtgis

Indiana Journal of Constitutional Design

Is Ecuador’s adoption of Article 422 in the 2008 Constitution properly viewed as a “re-statification”1 of Investor State Dispute Settlement (ISDS)? And, since its implementation, has the constitutional article been effective in institutionally insulating Ecuador from the jurisdictional reach of international ISDS? This paper answers both questions in the negative—but qualifies such an outlook by balancing the drawbacks of Article 422 against its successes. Article 422’s provisions, strident in its attempt to create an alternative development vision, did not achieve all that the Constitution’s drafters had hoped. Nevertheless, in its limited effect of detaching Ecuador from certain ISDS fora, it …

Misalignment: Corporate Risk-Taking And Public Duty, Steven L. Schwarcz

Notre Dame Law Review

This Article argues for a “public governance duty” to help manage excessive risk-taking by systemically important firms. Although governments worldwide, including the United States, have issued an array of regulations to attempt to curb that risk-taking by aligning managerial and investor interests, those regulations implicitly assume that investors would oppose excessively risky business ventures. That leaves a critical misalignment: because much of the harm from a systemically important firm’s failure would be externalized onto the public, including ordinary citizens impacted by an economic collapse, such a firm can engage in risk-taking ventures with positive expected value to its investors but …

Corporate And Business Law, Laurence V. Parker Jr.

University of Richmond Law Review

Over the past three years, there have been a number of legislative changes to Virginia's business entity statutes. In Part I,this article highlights the changes to the Virginia Stock Corporation Act ("VSCA") and the Virginia Nonstock Corporation Act ('"VNSCA"). Part II highlights changes to the Limited Liability Company Act ("LLC Act"). Part III summarizes Virginia's new intrastate crowdfunding law. The Supreme Court of Virginia has also addressed several significant issues over the last three years, including the applicability of appraisal rights in a stepped transaction. Part IV reviews several of the significant cases during this period.

Revitalizing Sec Rule 14a-8’S Ordinary Business Exclusion: Preventing Shareholder Micromanagement By Proposal, Stephen M. Bainbridge

Fordham Law Review

Who decides what products a company should sell, what prices it should charge, and so on? Is it the board of directors, the top management team, or the shareholders? In large corporations, of course, the answer is the top management team operating under the supervision of the board. As for the shareholders, they traditionally have had no role in these sort of operational decisions. In recent years, however, shareholders have increasingly used SEC Exchange Act Rule 14a-8 (the so-called “Shareholder Proposal Rule”) to not just manage but even micromanage corporate decisions. The Rule permits a qualifying shareholder of a public …

The Principle Of Subsidiarity And The Law Of The Family Business, Scott Fitzgibbon

Brigham Young University Journal of Public Law

No abstract provided.

Close Encounters With Piercing The Corporate Veil, Richard A. Booth

Villanova Law Review

No abstract provided.

Private Solutions To Global Crises, Gregory R. Day

St. John's Law Review

(Excerpt)

The contribution of this Article is both theoretical and practical. Considering that MNCs rarely suffer liability abroad, this Article identifies an emerging, understudied type of international agreement able to hold MNCs responsible for torts in the developing world. On a theoretical level, the research herein identifies situations in which arbitral decisions are superior to judicial rulings. This Article also advances the private dispute resolution literature, which has developed slowly due to arbitration’s private and confidential nature. The works that do discuss arbitration overwhelmingly assume that the process favors corporations, rarely mentioning arbitration’s socially desirable qualities. Thus, this Article offers …

Toward Consistent Fiduciary Duties For Publicly Traded Entities, Sandra K. Miller, Karie Davis-Nozemack

Florida Law Review

After the 2008 recession, it is difficult to imagine that the public is investing billions of dollars in publicly traded entities with little regulation of board conflicts and no fiduciary duty protections. Yet, that is precisely the case for more than $284 billion of investments. Investors have flocked to publicly traded limited partnerships (LPs) and limited liability companies (LLCs), collectively known as master limited partnerships (MLPs), because many are high-performing energy companies with a tax preference. MLP market capitalization, while only $14 billion in 2000, topped $284 billion as of February 2016, and more initial public offerings are on the …

Who Speaks The Culture Of The Corporation?, Gwendolyn Gordon

Michigan Business & Entrepreneurial Law Review

Recent cases – Burwell v Hobby Lobby Stores and Citizens United chief among them – evince a new understanding of the nature of the corporation and its place in society. Whether a corporation has rights – such as those of religious exercise – is not, however, just a question of legal interpretation. To answer this question requires a theory of group or cultural identity, that is, a theory of how a group may have “culture” separate and apart from those of the individuals that comprise it. And such a theory must address how to understand the meaning of culture when …

Equity In Llc Law?, Mohsen Manesh

Florida State University Law Review

To what extent does equity play a role in LLC law? To what extent do courts retain the judicial discretion “to do right and justice” in circumstances in which the LLC statute and the applicable LLC agreement do not otherwise offer an adequate remedy to an aggrieved LLC member or manager? Until recently, the answer to these questions was quite clear: Equity is subordinate to the freedom of contract and the express terms of the agreement governing an LLC. But the Delaware Chancery Court’s decision in In re Carlisle Etcetera has upended this basic precept of LLC law and practice. …

Why The Burden Of Proving Causation Should Shift To The Defendant Under The New Federal Trade Secrets Act, Robert A. Kearney

UC Law Business Journal

For years courts in trade secret misappropriation cases have filled up a graveyard with claims that did not account for every possible alternative cause of the Plaintiff’s losses. The result is perverse: the more disruptive the Defendant’s misappropriation, the less likely the Plaintiff will be able to show the jury a clear picture of what happened and prove “but for” causation. But the new federal law frees courts from those cases and from the state misappropriation statutes that produced them. What is needed now is a shift in thinking, and a shift in a burden.

Complying With The Federal Trade Commission’S Disclosure Requirements: What Companies Need To Know When Using Social-Media Platforms As Marketing And Advertising Spaces, Aimee Khuong

UC Law Business Journal

Social-media platforms have become huge marketing and advertising spaces for both well established and start-up companies. In the 1990s, the Internet became a means for companies to communicate with customers and to promote their products and services. Throughout the past decade, the Internet has become a powerful platform that has changed the way companies do business and communicate with their customers. The growth of digital marketing through the Internet resulted in new forms of marketing and advertising space. Nowadays, any business can reach a large market with a very small investment, and anybody that can read and write has the …

Yours, Mine And Ours: A Proposal To Bring Certainty To The Use Of Personal Goodwill In The Sale Of Assets Of A C Corporation, Teri L. K. Shugart

UC Law Business Journal

Use of a personal goodwill allocation in the sale of assets is the current darling of the tax wonk world, made popular again by the recent case of Bross Trucking v. Commissioner. The ability to allocate some of a corporate seller’s purchase price in a sale of assets to an individual shareholder rather than to the corporation saves that individual shareholder from being subject to the double taxation of a C corporation.

Despite its ability to save on taxes, company advisors are reluctant to allocate part of a purchase price to personal goodwill because of the uncertainty surrounding how to …

The Taxation Of Thieves And Their Victims: Everyone Loses But Uncle Sam, Christine Manolakas

UC Law Business Journal

The taxation of thieves and their victims must be studied as a whole. Both perpetrators and victims of crime must navigate the complexities of the federal tax laws. Not surprisingly, the decision to tax illegal income resulted in unreported income by criminals and prosecution of criminals by the Treasury Department. The perpetrators of crime must defend a second criminal prosecution, which requires a careful examination of the U.S. Constitution, provisions of the Internal Revenue Code, and administrative practices of the Internal Revenue Service. The victims of crime are often in conflict with the Treasury Department as to the inclusion and …

Using Proactive Legal Strategies For Corporate Environmental Sustainability, Gerlinde Berger-Walliser, Paul Shrivastava, Adam Sulkowski

Michigan Journal of Environmental & Administrative Law

We argue that proactive law can help organizations be more sustainable. Toward that end, this Article first summarizes proactive law literature as it pertains to corporate sustainability. Next, it examines a series of cases on the pivotal nexus between proactive law and corporate sustainability. It then advances novel propositions that connect proactive law to central organizational design elements. The discussion traces further implications and suggests fruitful avenues for research and ways of using proactive law for firms to become more sustainable.

The Islamic Law Perspective Of Precautionary Principle On Transboundary Movement Of Living Modified Organisms (Lmos), Sri Wartini

Jurnal Hukum & Pembangunan

The aim of the research is to examine the Islamic law perspective of precautionary principle on transboundary movement of living modified organisms (hereinafter LMOs) based on maslahah mursalah (public interest) and sadd al-dhara’i (blocking the means). The international trade of LMOs may affect the human health and environment in the importing states. Most of the importing states are Muslim states. Thus, it is important to examine the transboundary movement of LMOs from the Islamic law perspective. In order to elaborate on the issue, the reseach addresses the following questions: First, how is the relationship between man and nature (khalīfahand nature)? …

Front Matter

Michigan Business & Entrepreneurial Law Review

No abstract provided.

In Search Of Legal Foundation For Indonesian Family Firms, Yetty Komalasari Dewi

Indonesia Law Review

One of the factors that affect Indonesia’s economic growth is the existence of business firms. Most business firms in Indonesia are in the form of family-owned firm, and they are considered to constitute the backbone of the economic development. Family firms represent the most enduring business model in the world. The continuing success of family firms through the generations relies on ensuring the next generation. However, the issue of family firms is rarely discussed in particular from the perspective of corporate law. In fact, from legal perspectives, there are some issues dealing with this type of firm, among other, the …

Regulating Culture: Improving Corporate Governance With Anti-Arbitration Provisions For Whistleblowers, Nizan Geslevich Packin, Ben Edwards

William & Mary Law Review Online

A focus on corporate culture, especially at financial institutions, has emerged as a regulatory, public, and media priority in the aftermath of the 2008 financial crisis. With Dodd-Frank, Congress embraced whistleblower statutes as a key instrument to improve corporate culture and governance, and to extirpate undesired and unethical business practices. Despite the clear policy goals, Dodd- Frank’s unclear statutory text has created interpretative controversies. Although Dodd-Frank adds anti-arbitration provisions to preexisting whistleblower statutes, it does not include a dedicated, standalone anti-arbitration provision for Dodd-Frank’s new whistleblower cause of action. This Article argues that courts should not allow employers to use …

The Torturers: Evaluating The Senate Select Intelligence Committee’S Torture Report And Assessing The Legal Liability Of “Company Y” Under The Alien Tort Statute, David J. Satnarine

Pace International Law Review

This analysis seeks to argue that ‘Company Y’ is responsible for its role in the use of inhumane and tortious interrogation techniques during the CIA’s Interrogation and Detention Program under the Alien Tort Statute. Furthermore, this analysis will seek to reconcile case law in light of the Supreme Court’s decision in Kiobel v. Royal Dutch Petroleum Co., et. al., and subsequent court decisions opining on the extraterritorial reach of the Alien Tort Statute. Significantly, this analysis will also answer questions left open in the Kiobel decision by arguing that corporate entities, such as Company Y, may be held liable …

Recent Decision: Lawyers' Right To Incorporate

The Catholic Lawyer

No abstract provided.

Justice; Mater Et Magistra; Civil Rights; Zoning; Sociological Jurisprudence; Mr. Justice Brennan; Business Ethics

The Catholic Lawyer

No abstract provided.