![]() This is true even when the closely held company is of equal size as a publicly held participant in the same industry. On the other hand, closely held companies are free from many of the disclosure and other regulations that constrain publicly held enterprises in their activities. ![]() ![]() For example, in many jurisdictions owners in closely held companies are subject to heightened fiduciary duties to one another, which may preclude structural actions or transactions that would be permissible in the public company sphere. The practitioner’s toolkit must include the tools of the business organizational expert (deep familiarity with the alternative legal frameworks for organizing an enterprise, including corporations and limited liability companies) and of the estate planner (knowledge of the means by which ownership and management succession can be effected, which includes trust law and may include mergers and acquisitions, and the tax consequences of each succession alternative).Äepending on the jurisdiction, closely held company law may differ significantly from the law of the same jurisdiction that is applicable to corporations and other enterprises that are publicly held. Practitioners in closely held companies and family business law recognize the need to provide legal services that further the strategic objectives of the enterprise while simultaneously accommodating the personnel, familial, and estate planning goals of enterprise owners.
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