When business owners are in conflict, they must be aware of their fiduciary duty obligations to the company and the other owners.As conflict builds, an owner’s management is more critically reviewed, decisions questioned, and unpopular results criticized.Many business decisions are protected by the Business Judgment Rule.It is important for business owners to know and distinguish …
Since adoption of the Arizona Limited Liability Company Act (Arizona Act)1 in 1992, limited liability companies (LLCs) have become the business entity of choice for business people and their lawyers. This popularity is similarly evidenced in all jurisdictions across the United States. Yet, notwithstanding the widespread adoption of the LLC, in Arizona an important question …
When beginning a business, many co-owners prefer to spend time focusing on their common efforts rather than the risks associated with their business relationship. Some important questions are commonly (and understandably) avoided during this “honeymoon” phase. Unwillingness to focus on these issues while they are still hypothetical can leave the partnership on a shaky foundation …
Assume a creditor receives a judgment giving him a lien on a debtor’s interest in a business entity.In Arizona, this is called a charging order.If the business entity is a limited liability company (“LLC”), then the charging order is the creditor’s exclusive remedy to satisfy a judgment out of the debtor’s interest in the business …
What is a Charging Order? A charging order is a judgment lien that a creditor may obtain against a debtor’s interest in a business entity.Part One of this article in the Spring 2010 Newsletter discussed the effects of charging orders on limited liability companies (“LLCs”) and corporations.Part Two explains that, as with LLCs, a charging …