Blog Posts Tagged "family-owned business"
Creditors’ Rights Trump Ownership Restrictions in LLC Operating Agreements
Posted on Feb 03, 2016 by BY TURNER PADGET LITIGATION TEAM
A recent South Carolina Supreme Court decision affirms the supremacy of creditors’ foreclosure rights, and sounds a cautionary note for LLCs. The state’s high court said that LLCs can’t use an operating agreement to force a creditor to sell a distributional interest it obtained via judicial foreclosure.
The ruling came in Levy v. Carolinian, LLC, a case involving an LLC that owns an oceanfront hotel. One of the members, who owned about a quarter of the LLC, found himself on the wrong end of a judgment for $2.5 million. Creditors obtained a charging order – essentially a lien – against their debtor’s distributional interest in the LLC. The creditors then foreclosed on its charging lien and purchased the member’s distributional interest at public auction. continue reading
How to Write a Workable Non-Compete Agreement
Posted on Feb 18, 2015 by TURNER PADGET LITIGATION TEAM
Employers invest time, training and trust in key employees, and they don’t want to see them walk out the door and help a competitor. Non-compete agreements can protect your investment in employees – but only if they’re written with reasonable restrictions. continue reading
Don’t Allow Your Business to Become a Victim of the Dreaded Ds
Posted on Feb 11, 2015 by TURNER PADGET LITIGATION TEAM
Is your closely-held business protected from the five dreaded Ds – death, disability, divorce, disaster and disagreement? continue reading
Turmoil, and even business failure, can follow if you don’t have a legal succession plan in place when any of these events occur. While this may not offer you any comfort, you are certainly not alone if you haven’t yet set up a succession plan: fewer than half of closely-held and family-owned businesses have a plan in place that covers these contingencies.