Business Broker Deregulation Passes House

HR 2274 passed US House 422-0 on January 14, 2014. It Exempts merger and acquisition brokers from SEC “Broker-Dealer” registration requirements. Companion Senate legislation, S. 1923, is pending in the Senate. Current law requires business brokers to limit participation in negotiation of any terms of sale if owner earn-outs, stock purchases instead of asset purchases, or any…

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Illinois Noncompete Contract Limits Decision

A recent Illinois Appellate Court case, Fifield and Enterprise Finance Group, Inc. v. Premier Dealer Services, Inc., 2013 IL App (1st) 120327, held that a noncompetition agreement is not valid and enforceable if an employee is fired or resigns within two years. A copy of the decision is available at: http://www.state.il.us/court/Opinions/AppellateCourt/2013/1stDistrict/1120327.pdf. The offer here was made…

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All Regulations Are Local

Uber, a location-based limo service, has been excluded from many of the top 20 U.S. cities by local government regulations. See http://eeditionmobile.chicagotribune.com/Olive/Tablet/ChicagoTribune/SharedArticle.aspx?href=CTC%2F2014%2F01%2F06&id=Ar04100. The cab companies it displaces have fought back with new regulations designed to delay service, with lawsuits, and, indeed, with everything except lower prices and better service. What does this mean for your…

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Self-Dealing Is Easier In Some States

Where your corporation is organized can make a big difference in what self-dealing (sometimes litigated as “misappropriation of corporate opportunities”) is allowed. The New York Times pointed out the advantages of Nevada incorporation over Delaware for the major owner of Dish Network’s possible purchase of LightSquared, Inc., a broadband wireless company. See http://nyti.ms/1bfXsQe. The story…

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