In closely held companies, particularly LLCs and corporations with a limited number of shareholders, the issue of compensation for owners and shareholders can be a legal minefield. A significant concern arises when majority owners, often also serving as executives, award themselves excessively high salaries or compensation. This practice, while appearing…
Recent Illinois law regarding the defense of officers and directors of corporations and LLCs encompasses several key factors: 1. Fiduciary Duties: Officers and directors of corporations and LLCs are fiduciaries, holding duties of good faith, loyalty, and honesty to the corporation. They are not permitted to enhance their personal interests…
The legal landscape for Officers and Directors of Illinois corporations and LLCs is constantly evolving. Recent developments in laws, regulations, and court decisions have significant implications for the responsibilities and liabilities of board members. At Lubin Austermuehle, we are committed to staying ahead of these changes to provide our clients…
Limited Liability Companies (LLCs) are a popular business structure known for providing liability protection to its members. However, conflicts and wrongdoing within an LLC can occur, leading to disputes among members. When an LLC suffers harm due to actions taken by its management or majority members, a derivative suit can…
Fiduciary duty law is a crucial legal concept that governs the relationships between individuals or entities entrusted with responsibilities to act in the best interests of others. In the state of Illinois, as in many other jurisdictions, fiduciary duty law plays a central role in various contexts, including business, finance,…
Introduction Shareholder derivative lawsuits are legal actions brought by individual shareholders on behalf of a corporation against its officers, directors, or other insiders. These lawsuits typically allege misconduct, mismanagement, or breaches of fiduciary duties by those in control of the corporation. Defending against a shareholder derivative lawsuit can be complex…
Corporate veil piercing is a legal concept that allows a court to hold individual shareholders or owners of a corporation personally liable for the corporation’s actions or debts. It is a complex legal doctrine that is typically associated with business law, but in the case of Oliver v. Isenberg, 2019…
Donald J. Trump is already facing dozens of criminal charges for allegedly falsifying business records and misusing campaign funds in an alleged attempt to influence the 2016 presidential election. Yet Trump is back in court suing his former attorney, Michael Cohen, for $500 million. The lawsuit accuses Cohen of talking…
We all know attorneys are not allowed to represent both sides in a lawsuit, but what if the law firm currently representing one side used to represent the other side? Wouldn’t that be considered a conflict of interest? It’s especially likely to pose a problem if the issue involved in…
In the case of Pickering v. Owens-Corning Fiberglas Corp., 265 Ill. App. 3d 806, the plaintiff sought punitive damages against the defendant for the defendant’s failure to warn consumers of the dangers associated with asbestos exposure. Punitive damages are damages awarded in addition to compensatory damages and are intended to…