Inside Business Law

Quarterly Update by the Private Equity and Venture Capital Committee

The Private Equity and Venture Capital Committee published its latest Preferred Returns newsletter in December 2012. The mission of the committee is to provide a unique and highly educational forum for private equity and venture capital practitioners of all experience levels to exchange views and information on current and emerging legal and practical issues, trends, and developments and practice considerations of specific interest or relevance to private equity and venture capital funds, and their investment transactions, portfolio companies, and investors. Although their newsletters are published on a quarterly basis, members may subscribe to the committee's listserve for ongoing discussions.

In the newsletter, the committee highlights several articles and topics from the listserve discussions, which include, among many others, articles and discussions on the JOBS Act and crowdfunding and fiduciary duties in the context of LLCs

  • Matthew S. Brown's article "Crowd Control: Optimizing the Crowdfunding Provisions of the JOBS Act" addresses the practical and legal concerns surrounding the JOBS Act. As of January 1, 2013, businesses may sell up to $1 million of securities online every 12 months to an unlimited number of purchasers. Although the looser regulatory requirements encourage investments in emerging companies, the method of funding may result in costly expenses related to the administration of reporting, disclosure, and solicitation of votes. Brown examines different solutions such as the use of voting agreements or voting trusts to overcome certain issues that may arise for businesses taking advantage of the JOBS Act.
  • Srinivas M. Raju and Robert L. Burns' article " Fiduciary Duties and LLCs: Like Oil or Like Water" reminds us that although the Court of Chancery consistently concludes that default fiduciary duties apply in the context of an LLC, the Supreme Court in Gatz Props., LLC v. Auriga Capital Corp (Del. Nov. 7, 2012), has opened the door to a different interpretation.

Cyberspace Law Committee's Upcoming Events

The Cyberspace Law Committee's recent newsletter is packed with upcoming programs for the new year. The Winter Working Meeting is scheduled for the end of January and the contents of the scheduled presentations are now available. The Digital Media Subcommitee and the Cybersecurity Subcommittee provide recent updates on their projects. Moreover, since the presentation on fiduciary access to digital assets of a deceased or incapacitated person, sponsored by the Cyberspace Law Committee in January 2012, the Uniform Law Commissioners have accepted the recommendations to appoint a drafting committee. For more information on getting involved, please be sure to read the newsletter.

New Edition of the Blue Sky Bugle

The ABA Business Law Section's Committee on State Regulation of Securities recently published the latest Blue Sky Bugle newsletter, packed with content. Be sure not to miss out on discussions on the SEC's Family Office Rule, Rule 506 offerings and investment advisers, and registration requirements in Canada for non-Canadian investment fund managers.

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Question: From September 8 through 10,  Boston, Massachusetts – also known as Bean Town, the City of Notions and the Cradle of Liberty – will host the 2016 Business Law Section Annual Meeting. Which of the following is the official motto of the City of Boston?

A.  Ense petit placidam sub libertate quietem

B.  Libertate defenderet, justic sectantes

C.  Ad astra per aspera

D.  Sicut patribus sit Deus nobis 

Please see Inside Business Law for the answer to this month’s Business Law Section Trivia Question.

Following the 2016 Section Annual Meeting, the September issue of Business Law Today will feature an array of highlights from the meeting in Boston. Additional topics include explaining the Defend Trade Secrets Act, diversity jurisdiction and unincorporated entities, and mitigating the threat of insolvency before it’s too late.

Do you have a great idea for a BLT article? Would you like to see more of a featured column? Let us know how we can make Business Law Today the best resource for you and your clients. We welcome any suggestions. Please send us your feedback here.

Business Law Section Annual Meeting
September 8-10, 2016
Boston, MA

Miscellaneous IT Related Legal News (MIRLN) 24 July - 13 August 2016 (v19.11)

BLT is a web-based publication drawing upon the best of the Section's resources, including featured articles and other information from around the Section. Stay informed on the latest business law practice news and information that will benefit you and your clients.