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Corporations

2008

Darian M Ibrahim

Articles 1 - 3 of 3

Full-Text Articles in Law

The (Not So) Puzzling Behavior Of Angel Investors, Darian M. Ibrahim Jan 2008

The (Not So) Puzzling Behavior Of Angel Investors, Darian M. Ibrahim

Darian M Ibrahim

Angel investors fund start-ups in their earliest stages, which creates a contracting environment rife with uncertainty, information asymmetry, and agency costs in the form of potential opportunism by entrepreneurs. Venture capitalists also encounter these problems in slightly later-stage funding, and use a combination of staged financing, preferred stock, board seats, negative covenants, and specific exit rights to respond to them. Curiously, however, traditional angel investment contracts employ none of these measures, which appears inconsistent with what financial contracting theory would predict. This Article explains this (not so) puzzling behavior on the part of angel investors, and also explains the recent …


Individual Or Collective Liability For Corporate Directors?, Darian M. Ibrahim Jan 2008

Individual Or Collective Liability For Corporate Directors?, Darian M. Ibrahim

Darian M Ibrahim

Fiduciary duty is one of the most litigated areas in corporate law and the subject of much academic attention, yet one important question has been ignored: Should fiduciary liability be assessed individually, where directors are examined one-by-one for compliance, or collectively, where the board’s compliance as a whole is all that matters? The choice between individual and collective assessment may be the difference between a director’s liability and her exoneration, may affect how boards function, and informs the broader fiduciary duty literature in important ways. This Article is the first to explore the individual/collective question and suggest a systematic way …


Entrepreneurs On Horseback: Reflections On The Organization Of Law, Darian M. Ibrahim Dec 2007

Entrepreneurs On Horseback: Reflections On The Organization Of Law, Darian M. Ibrahim

Darian M Ibrahim

“Law and entrepreneurship” is an emerging field of study. Skeptics might wonder whether law and entrepreneurship is a variant of that old canard, the Law of the Horse. In this Essay, we defend law and entrepreneurship against that charge and urge legal scholars to become even more engaged in the wide-ranging scholarly discourse regarding entrepreneurship. In making our case, we argue that research at the intersection of entrepreneurship and law is distinctive. In some instances, legal rules and practices are tailored to the entrepreneurial context, and in other instances, general rules of law find novel expression in the entrepreneurial context. …