Both public and private businesses often appoint a board of directors. This board is meant to make corporate decisions that are in the best interests of the company and its shareholders.

Given this authority, both CEOs and board members are expected to act in good faith. This means that they are not allowed to make deicisions that would benefit their interests at the expense of shareholder interests. 

While shareholders are protected by many common law provisions, the federal government has also passed specific provisions to govern corporate board behavior for public companies. These provisions include restrictions on loans between companies and their board members, as well as disclosure requirements for financial statements. 

If you are a shareholder who believes that your company's board members have not acted in good faith, contact the Des Moines business attorneys of LaMarca & Landry, P.C., at 877-327-2600. 

Most firms need to raise capital for the purposes of either starting a business or taking on a new business project. In order to raise this capital, firms will typically use one of two types of financing.

The first is equity financing, whereby the firm raises capital through investors. In return, the investors will receive stock or equity in the firm. 

As an alternative, firms will also employ debt financing, in which the firms will raise capital by offering debt securities. In return, creditors will receive interest payments and repayment of the principal amount. 

One advantage of debt financing is that firms can deduct the interest payments from their tax returns. This deduction will result in a tax savings that will save the firm valuable cash. 

If your company has questions about its debt financing, contact the Des Moines business lawyers of LaMarca & Landry, P.C., at 877-327-2600.