R8 Flashcards
limited partnership management requirements
at least one limited and one general partner
shareholders right to inspect books and records of a corporation
5 days written notice with a proper purpose is required to inspect
preemptive right
right to purchase new issuances of additional stock to maintain current proportional ownership
(3) reasons for piercing the corporate veil
- commingling personal/corporate funds 2. inadequate capitalization 3. committing fraud on existing creditors
bonds are also known as
debt securities (equity securities are stocks(
bankruptcy chapters where trustee is appointed
ch 7, ch 13 (adjustments of debts),
*note: chapter 11 (reorg) trustee is not required, but court may appoint one if necessary
companies that may not participate in chapter 7 or chapter 11 bankruptcy proceedings?
BRISS
banks, railroads, insurance companies, small business investment companies, saving institutions
whom cannot be involuntarily peititoned into bankruptcy
FARMERS AND NONPROFIT CHARITIES
what is an automatic stay
stops the enforcement of all judgment liens and collection actions against the debtor. happens when someone files an involuntary petition
what chapter of bankruptcy may farmer not participate
chapter 9, which is for municipal debt adjustments
max amount available to repayment of employees wages & benefits in a bankruptcy
13,650 to wage claims of employees within 180 days of bankruptcy
anything remaining may go to employee benefits
unless otherwise agreed upon, how is voting power determined in LLC
This is calculated by comparing each member’s capital contribution to that of the other members.
the business judgment rule
effectively limits liability for directors if they act in good faith
