FTB Has Started to Dissolve Administratively Suspended Corporations

Posted on February 28, 2021 by Richard Burt

In 2019, a new law took effect in California, which permits a California corporation to be administratively dissolved if the corporation’s corporate powers have been suspended by the Franchise Tax Board (“FTB”) for 60 consecutive months. Before dissolving the corporation … Continue reading →

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When Are Out-of-State Entities Doing Business in California?

Posted on October 1, 2020 by Richard Burt

What if a corporation or a limited liability company (LLC) is formed in another state, like Delaware or Nevada, but does business in California? The out-of-state business entity (a “foreign” business entity) must register with the state, file tax returns, … Continue reading →

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Out-of-State Partnership Required to File in California because of Pass-Through Income

Posted on March 5, 2020 by Richard Burt

LCP VII Holdings LP was a foreign partnership with interests in entities both inside and outside of the United States, and it had California-source income from pass-through entities. It did not file tax returns in California on the basis it … Continue reading →

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California Corporations Code Not Applied to Avoid Dissolution of Foreign Entities

Posted on June 7, 2019 by Richard Burt

When an action is brought to dissolve a California limited partnership or a California limited liability company, the California Corporations Code allows the other partners or the other members to avoid the dissolution by purchasing, for cash, the interests owned … Continue reading →

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Legislature Expands Shareholder Inspection Rights

Posted on February 27, 2019 by Richard Burt

The Corporations Committee of the Business Law Section of the California Lawyers Association today published an e-bulletin, which I authored. The text follows: The legislature amended Corporations Code § 1601, which grants shareholders the right to inspect and copy corporate … Continue reading →

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Bad Corporate Practice Leads to Bad Result

Posted on February 19, 2019 by Richard Burt

I recently had a practice note published in the February 2019 eNews from the Business Law Section of the California Lawyers Association. What follows is the text that was submitted for publication. The Delaware Court of Chancery found that a stockholder … Continue reading →

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Delaware Court Upholds Non-Compete against California Employee

Posted on December 10, 2018 by Richard Burt

The following is the text of an e-bulletin that I wrote and that was published by the Corporations Committee of the Business Law Section of the California Lawyers Association. Patrick Miles, a California resident, was first hired in 2001 by … Continue reading →

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Administrative Dissolution of Corporations and LLCs Adopted in California

Posted on December 10, 2018 by Richard Burt

The following is the text of an e-bulletin that I wrote and that was published by the Corporations Committee of the Business Law Section of the California Lawyers Association. On September 22, 2018, Assembly Bill No. 2503 was signed into … Continue reading →

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Buy-Sell Agreements in the Articles of Incorporation

Posted on June 20, 2018 by Richard Burt

Under the Corporations Code, if there is a suit for involuntary dissolution, or if there is an election to dissolve voluntarily by shareholders representing only 50% of the voting power of the stock, the dissolution of the corporation and the … Continue reading →

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Business Law Attorney Richard Burt Helps Draft New Corporate Law

Posted on October 12, 2017 by Richard Burt

A corporation is typically dissolved when the shareholders holding shares that have 50% or more of the voting power elect to dissolve. When an order for relief has been entered under Chapter 7 of the U.S. Bankruptcy Code, the board … Continue reading →

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