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Business Organizations Law

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2013

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Full-Text Articles in Law

Business Associations, Crystal J. Clark Dec 2013

Business Associations, Crystal J. Clark

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, 2012 and May 31, 2013, by the Georgia Supreme Court, the Georgia Court of Appeals, the United States Court of Appeals for the Eleventh Circuit, and the United States district courts located in Georgia.' This Article also discusses relevant legislation enacted during the survey period.


What Should We Do About Multijurisdictional Litigation In M&A Deals?, Randall S. Thomas Nov 2013

What Should We Do About Multijurisdictional Litigation In M&A Deals?, Randall S. Thomas

Vanderbilt Law Review

Companies and their investors have been battling over the value of representative shareholder litigation since at least the 1940s. Investors argue that managerial agency costs are high and that class actions and derivative suits are key shareholder monitoring mechanisms that they can deploy to keep managers in line. Companies, on the other hand, believe that the plaintiffs' bar drives representative litigation claims, as agency costs in contingency fee suits make the lawyer the real party in interest. Over the past several decades, there have been numerous skirmishes between these two sets of actors, manifesting themselves, for example, in congressional debates …


Corporate And Business Law, Laurence V. Parker Jr. Nov 2013

Corporate And Business Law, Laurence V. Parker Jr.

University of Richmond Law Review

No abstract provided.


Fee Shifting And The Free Market, Jonathan T. Molot Nov 2013

Fee Shifting And The Free Market, Jonathan T. Molot

Vanderbilt Law Review

It is uncontroversial that litigation is too expensive. Controversy abounds, however, over who is to blame and what is to be done about the problem. Plaintiffs and defendants each accuse the other of pursuing weak or meritless litigation positions that inflict needless expense. This Article suggests that regardless of who is correct-and who is more often at fault-the same set of solutions may be available to assuage the problem. The Article embraces a combination of procedural reforms and market mechanisms designed to improve matters for both sides and to make it less likely that a party with a meritorious litigation …


The Conundrum Of Corporate Liability Under The Alien Tort Statute, Joel Slawotsky Oct 2013

The Conundrum Of Corporate Liability Under The Alien Tort Statute, Joel Slawotsky

Georgia Journal of International & Comparative Law

No abstract provided.


Resurrecting Deference To The Securities And Exchange Commission: Mark Cuban Trading On Inside Information, Steven J. Cleveland Oct 2013

Resurrecting Deference To The Securities And Exchange Commission: Mark Cuban Trading On Inside Information, Steven J. Cleveland

Florida Law Review

By applying the Supreme Court‘s administrative law jurisprudence to the examination of the validity of Rule 10b5-2(b)(1)—a rule recently adopted by the Securities and Exchange Commission (Commission)—this Article fills a significant gap in the existing literature. To date, commentators have argued against the rule‘s validity by applying the Supreme Court‘s securities law jurisprudence without considering the role of administrative law—despite the Court‘s comments that the pertinent statute is ambiguous, despite express delegation of rulemaking authority by Congress to the Commission, and despite developments in administrative law subsequent to the Court‘s relevant securities law decisions. By not considering the role of …


A Capital Market, Corporate Law Approach To Creditor Conduct, Mark J. Roe, Frederico Cenzi Venezze Oct 2013

A Capital Market, Corporate Law Approach To Creditor Conduct, Mark J. Roe, Frederico Cenzi Venezze

Michigan Law Review

The problem of creditor conduct in a distressed firm—-for which policymakers ought to have the distressed firm’s economically sensible repositioning as a central goal—-has vexed courts for decades. Because courts have not come to coherent, stable doctrine to regulate creditor behavior and because they do not focus on building doctrinal structures that would facilitate the sensible repositioning of the distressed firm, social costs arise and those costs may be substantial. One can easily see why developing a good rule here has been hard to achieve: A rule that facilitates creditor intervention in the debtor’s operations beyond the creditor’s ordinary collection …


Front Matter Sep 2013

Front Matter

Michigan Business & Entrepreneurial Law Review

No abstract provided.


Shareholder Derivative Litigation's Historical And Normative Foundations, Ann M. Scarlett Aug 2013

Shareholder Derivative Litigation's Historical And Normative Foundations, Ann M. Scarlett

Buffalo Law Review

No abstract provided.


Corporate Tort Liability Under The Alien Tort Statute Post-Kiobel, Scott E. Allbright Jr. Jul 2013

Corporate Tort Liability Under The Alien Tort Statute Post-Kiobel, Scott E. Allbright Jr.

University of Miami Business Law Review

No abstract provided.


Regulating Shadows: Financial Regulation And Responsibility Failure , Steven L. Schwarcz Jun 2013

Regulating Shadows: Financial Regulation And Responsibility Failure , Steven L. Schwarcz

Washington and Lee Law Review

In the modern financial architecture, financial services and products increasingly are provided outside of the traditional banking system—and thus without the need for bank intermediation between capital markets and the users of funds. Most corporate financing, for example, no longer is dependent on bank loans but is raised through special-purpose entities, money- market mutual funds, securiti es lenders, hedge funds, and investment banks. This shift, referred to as “disintermediation” and described as creating a “shadow banking” system, is transforming finance so radically that regulatory scholars need to rethink their assumptions. Two of the fundamental market failures underlying shadow banking—information failure …


Removing Revlon, Franklin A. Gevurtz Jun 2013

Removing Revlon, Franklin A. Gevurtz

Washington and Lee Law Review

This Article advocates the abolition of the Revlon doctrine— the junior partner in Delaware’s corporate takeover jurisprudence, which governs certain contests involving auctions and sales of control. Revlon arose in the twilight zone created by the overlap between defenses to hostile tender offers and efforts by directors to avoid or coerce a shareholder vote on corporate mergers and sales (shotgun corporate marriages). The narrow holding of the case stands for the common sense proposition that if directors decide to sell their corporation by choosing between two bids, both of which will pay all of the shareholders cash for all of …


The Transfer Pricing Regs Need A Good Edit, Susan C. Morse May 2013

The Transfer Pricing Regs Need A Good Edit, Susan C. Morse

Pepperdine Law Review

The U.S. government has broad discretion to change the transfer pricing regulations as they apply to corporate multinationals, and these regulations need changing because they give too much leeway to taxpayers and will continue to serve an important function in the division of international tax jurisdiction regardless of the fate of pending reform proposals. Xilinx and Veritas illustrate that taxpayers whose transfer pricing is challenged can successfully defend themselves using arm’s length definitions in the government’s own regulations. U.S. tax administrators should write revised transfer pricing rules that afford taxpayers less contracting freedom. They should incrementally add formulaic elements to …


A Proposal For The Tax Treatment Of Interest In A Territorial System, Martin A. Sullivan May 2013

A Proposal For The Tax Treatment Of Interest In A Territorial System, Martin A. Sullivan

Pepperdine Law Review

To prevent negative effective tax rates in a territorial system, a multinational corporation’s deductions for interest expense attributable to foreign profits must be disallowed. To determine what portion of worldwide interest is foreign, it is commonly suggested that interest be allocated in proportion to assets. Because it would ease administrative problems and because it would reduce the incentives to shift profits through aggressive transfer pricing, allocation of interest in proportion to gross profits would be a superior approach. Also, contrary to the usual argument, the United States should not be reluctant to unilaterally adopt interest disallowance rules because it would …


Corporate And International Tax Reform: Proposals For The Second Obama Administration (And Beyond), Reuven S. Avi-Yonah May 2013

Corporate And International Tax Reform: Proposals For The Second Obama Administration (And Beyond), Reuven S. Avi-Yonah

Pepperdine Law Review

The passage of the American Taxpayer Relief Act of 2012 (“ATRA”) offers an opportune moment to consider proposals for corporate and international tax reform. With the debate over individual tax rates for the income and estate tax settled for the present, the President and Congress are free to consider broader reforms. This paper will attempt to raise some proposals for US corporate and international tax reform, beginning with long-term options (a 10 year horizon), continuing with the medium term (2-5 years) and concluding with short-term options (1-2 years). The main proposals are for the US to adopt a VAT and …


Passthrough Entities: The Missing Element In Business Tax Reform, Karen C. Burke May 2013

Passthrough Entities: The Missing Element In Business Tax Reform, Karen C. Burke

Pepperdine Law Review

Reform of the U.S. corporate tax system is again on the agenda. Despite important differences, many current proposals share two common goals: (1) reducing the statutory corporate tax rate to improve U.S. international competitiveness and (2) broadening the corporate tax base by reducing or eliminating business expenditures to offset revenue losses. Given the significance of the passthrough sector and the relationship between individual and corporate taxes, however, such reforms need to be considered within a broader context. Part I of this article discusses the growing significance of the passthrough sector, which now accounts for roughly half of net business income. …


The Globalization Of Corporate Tax Reform, Steven A. Bank May 2013

The Globalization Of Corporate Tax Reform, Steven A. Bank

Pepperdine Law Review

With the growth of multinational corporations and its effect on corporate tax revenues, it is not surprising that international tax reform is a major part of President Obama’s Framework for Business Tax Reform as he begins his second term. Noticeably missing from this and other discussions of the major structural reform proposals, however, is any mention of the influence and importance of international corporate tax reform efforts. Although the concern over corporate tax evasion is especially pronounced in the U.S., the "decentering" of multinational corporations and corporate tax revenues is by no means an exclusively American problem. Around the world, …


Toward An Empirical And Theoretical Assessment Of Private Antitrust Enforcement, Joshua P. Davis, Robert H. Lande May 2013

Toward An Empirical And Theoretical Assessment Of Private Antitrust Enforcement, Joshua P. Davis, Robert H. Lande

Seattle University Law Review

The predominant view in the antitrust field has been that private enforcement, and especially class action cases, yields little or no positive results. This Article analyzes these twenty cases, compares and contrasts their analysis with that of our earlier group of forty cases, and draws new insights from the results of all sixty combined. This Article demonstrate that private antitrust litigation has provided a substantial amount of compensation for victims of anticompetitive behavior: at least $33.8 to $35.8 billion. The studies also demonstrate that private antitrust enforcement has had an extremely strong deterrent effect. In fact, this research demonstrates that …


Application Of The Active Business Requirement To The Tax-Free Spin-Off Of Corporate Real Estate , Richard J. Albrecht May 2013

Application Of The Active Business Requirement To The Tax-Free Spin-Off Of Corporate Real Estate , Richard J. Albrecht

Pepperdine Law Review

No abstract provided.


Corporate Governance In China: How Does The State Influence Its Own Enterprises?, Kan Zhang May 2013

Corporate Governance In China: How Does The State Influence Its Own Enterprises?, Kan Zhang

Brigham Young University International Law & Management Review

No abstract provided.


Front Matter May 2013

Front Matter

Michigan Business & Entrepreneurial Law Review

No abstract provided.


The Market For Preclusion In Merger Litigation, Sean J. Griffith, Alexandra D. Lahav May 2013

The Market For Preclusion In Merger Litigation, Sean J. Griffith, Alexandra D. Lahav

Vanderbilt Law Review

Delaware dominates the corporate law market.' More than half of all public companies and over sixty percent of the Fortune 500 are incorporated in Delaware. These companies are subject to Delaware's corporate law regardless of where their businesses are physically located. Although academics continue to debate whether it is good or bad, they have long agreed that Delaware's dominance is a result of its law and its judiciary. As a corollary, it was widely understood that Delaware courts decided most cases involving Delaware corporations. The discovery that litigation involving these corporations very often takes place outside of Delaware therefore came …


Regulation Of Energy By The Colorado Public Utilities Commission, William Hamilton Mcewan, Peter R. Nadel Apr 2013

Regulation Of Energy By The Colorado Public Utilities Commission, William Hamilton Mcewan, Peter R. Nadel

Journal of the National Association of Administrative Law Judiciary

No abstract provided.


When Europe Hits Home: How Europeanization Triggers The Conflict Of Capitalism In The German System Of Corporate Control, Alexander El Alaoui Apr 2013

When Europe Hits Home: How Europeanization Triggers The Conflict Of Capitalism In The German System Of Corporate Control, Alexander El Alaoui

Claremont-UC Undergraduate Research Conference on the European Union

No abstract provided.


Business Roundtable V. Securities And Exchange Commission: The Sec's First Big Shot At Proxy Access In The Shadow Of Dodd-Frank, Raymond E. Areshenko Apr 2013

Business Roundtable V. Securities And Exchange Commission: The Sec's First Big Shot At Proxy Access In The Shadow Of Dodd-Frank, Raymond E. Areshenko

Journal of the National Association of Administrative Law Judiciary

No abstract provided.


When The Government Attempts To Change The Board, Investors Should Know, William O. Fisher Apr 2013

When The Government Attempts To Change The Board, Investors Should Know, William O. Fisher

Pepperdine Law Review

In 2008 and 2009, the federal government effectively hired and fired directors at American International Group and Bank of America, without any securities filing of the sort that would have been required had a private market actor attempted to change the boards at those companies. The fact that current law allows the government to secretly reconstitute the governing bodies of multibillion-dollar, publicly traded companies is cause for concern, for who controls the board controls the company. This Article argues that, just as securities filings alert investors when private parties attempt board change, a new required filing should inform investors when …


Market Power In Power Markets: The Filed-Rate Doctrine And Competition In Electricity, Sandeep Vaheesan Apr 2013

Market Power In Power Markets: The Filed-Rate Doctrine And Competition In Electricity, Sandeep Vaheesan

University of Michigan Journal of Law Reform

State and federal initiatives have opened the American electric power industry to competition over the past four decades. Although the process has not occurred uniformly across the country, wholesale electricity markets exist everywhere today. Independent power producers can construct generation facilities and sell their output to utilities and industrial customers through bilateral contracts. In many regions, centralized power markets now facilitate the sale of billions of dollars in electricity annually through auctions. Although market forces have replaced direct price regulation in electricity, antitrust enforcement has not expanded its role commensurately. A lack of competition has been a serious problem in …


“Comply Or Explain”—A Flexible Mechanism To Countervail Behavioral Biases In M&A Transactions, Gerrit M. Beckhaus Apr 2013

“Comply Or Explain”—A Flexible Mechanism To Countervail Behavioral Biases In M&A Transactions, Gerrit M. Beckhaus

University of Miami Business Law Review

Mergers and acquisitions (M&A) are a common phenomenon of great importance in today’s business world. However, the majority of them fail to achieve the aspired objectives. These failures can be attributed to various circumstances, inter alia decision-makers’ vulnerability to behavioral biases due to the complexity, uncertainty, and time pressure characteristic of M&A transactions. Such biases often lead to predictable irrational behavior resulting in momentous misjudgments. Despite numerous psychological studies proving that people systematically tend to make irrational decisions under uncertainty, neither the transactional practice nor its current legal framework address this problem. Instead, the present law shields decision-makers from potential …


The Social Enterprise Revolution In Corporate Law: A Primer On Emerging Corporate Entities In Europe And The United States And The Case For The Benefit Corporation, Robert T. Esposito Apr 2013

The Social Enterprise Revolution In Corporate Law: A Primer On Emerging Corporate Entities In Europe And The United States And The Case For The Benefit Corporation, Robert T. Esposito

William & Mary Business Law Review

Remarkably, in the face of a global recession, the social enterprise sector continued to experience extraordinary growth in both financial support and the number of newly authorized corporate entities aimed at social entrepreneurs who seek to use the power of business to simultaneously achieve profit and social or environmental benefits. This Article highlights recent developments in the social enterprise movement in Europe and the United States and focuses on the emergence of a surprisingly broad range of newly authorized corporate entities on both continents in response to the needs of social entrepreneurs. These include social cooperatives and the community interest …


The Business Judgment Rule As An Immunity Doctrine, Lori Mcmillan Apr 2013

The Business Judgment Rule As An Immunity Doctrine, Lori Mcmillan

William & Mary Business Law Review

The business judgment rule is a judicially created doctrine that protects directors from personal civil liability for the decisions they make on behalf of a corporation. In today’s era of corporate scandals, global financial meltdowns, and directorial malfeasance, it has become especially important in setting the bar for when directors are appropriately responsible to shareholders for their actions. Traditionally the business judgment rule has been regarded as a standard of liability, although it has never really been explored or enunciated as such. This view determines eligibility for business judgment rule protection of a directorial decision after an examination of certain …