2010 May | Des Moines Business Lawyer

How can attorneys provide due diligence in business transactions?

Posted on May 26th, 2010 No Comments

When businesses engage in transactions with consumers or other businesses, they often first perform due diligence. During due diligence, businesses investigate various aspects of the transaction and the transaction partner.

Because due diligence involves many legal issues, due diligence is often performed by attorneys and other outside experts. These experts have the legal and financial knowledge necessary for investigating complicated transactions.

If your business needs legal help with due diligence, contact the Des Moines business attorneys of LaMarca & Landry, P.C., at 877-327-2600.

When can investors sue a company?

Posted on May 20th, 2010 No Comments

When individuals or companies invest in another business, they may expect their invested business to maximize the value of their investment. For public companies, the CEO and board of directors have a fiduciary duty to maximize shareholder value.

Private companies, however, have less of an obligation to maximize investor value. That being said, private companies may be sued for misusing investor funds. For instance, they may be sued for spending investor funds on expenses that are not related to the business.

If you or anyone you know has questions about the rights of investors, contact the Iowa business attorneys of LaMarca & Landry, P.C., at 877-327-2600.

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What is D&O insurance coverage?

Posted on May 11th, 2010 No Comments

Many businesses, especially corporations, acquire insurance coverage for their directors and officers. This insurance coverage is typically known as director and officer coverage.

In most cases, this insurance protects directors and officers from the risk of personal liability for the services they provide to the business. This insurance will provide coverage in one of the following two ways:

it will compensate the business for any indemnification or advanced expenses for officers and executives
it will compensate the officers or executives directly

Because indemnification and D&O insurance coverage deal with a number of legal contingencies, many businesses consult outside attorneys to help them in these matters. If your business has such questions, contact the Iowa indemnification attorneys of LaMarca & Landry, P.C., at 877-327-2600.

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The risks of borrowing from family members to start a business

Posted on May 11th, 2010 No Comments

Many individuals who choose to start a business have trouble finding startup capital. Many significant investors will not risk investing in a startup, and most banks and other lending institutions will be unwilling to make significant loans to new businesses.

For that reason, many individuals turn to family members for loans and investment capital. In either case, individuals and their family members may want to create a formal contract. Such a formal contract will outline the terms of the agreement and account for any reasonable contingencies.

If you or anyone you know has questions about writing up a formal contract to start a business, contact the Des Moines business formation attorneys of LaMarca & Landry, P.C., at 877-327-2600.

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The risks of receiving loans and investment from family members and friends

Posted on May 4th, 2010 No Comments

Many people who want to start their own businesses have trouble securing capital from investors and creditors. Without any other options, they turn to family members and friends.

One advantage of loans from family members and friends is that they may have very low to no interest payments, meaning that the business owner will only owe the principal amount. However, there are many legal risks of receiving loans and investments from family members.

In some cases, the arrangements could turn sour and require a legal resolution. To avoid such a disagreement, family members should draw out formal legal contracts with the assist of an attorney. Moreover, they should also consider the tax implications of such loans and investments.

If you or anyone you know has questions about loans or investments from family members, contact the Des Moines business attorneys of LaMarca & Landry, P.C., at 877-327-2600.

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How is compensation determined in a partnership?

Posted on May 4th, 2010 No Comments

When a group of people chooses to form a partnership, they often need to consider a number of issues. One of the most important issues is compensation.

In some cases, the partners will each receive an equal amount of compensation. However, partners may choose to receive different compensations. One of the reasons for receiving different amounts is that each partner may bring different assets into the business.

For instance, one partner may entrust the business with a building and request greater compensation for his asset. On the other hand, one partner may bring more professional expertise to the partnership, and for that reason, request a greater compensation.

If your partnership has questions about compensation issues, contact the Des Moines business attorneys of LaMarca & Landry, P.C., at 877-327-2600.

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