Carson City Startup Attorneys & Lawyers

Key Takeaways

• The Delaware LLC Act offers unmatched flexibility in governance, ownership, and structuring.
• Delaware LLCs are governed primarily by their operating agreements, not statutory default rules.
• The Act allows LLCs to customize fiduciary duties, management authority, and information rights.
• Series LLCs can provide asset protection and administrative efficiency.
• Information rights of members and managers can be limited or defined clearly in the operating agreement.

The Delaware LLC Act governs the limited liability company structure in Delaware. The structure is essentially a hybrid of the best features of both corporations and partnerships and the owners are called “members.” If you incorporate under the Delaware LLC Act, you do not need to have an operating agreement, though you may have an agreement that g

...

What Is a Rights Offering?

A rights offering takes place when a company needs to raise more money. Rather than offer shares to anyone, it gives current shareholders a chance to buy more stock during a fixed period.

How Does a Rights Offering Help?

This method lets shareholders keep their current level of ownership in the business while the company gets more capital. In most rights offerings, the existing shareholders get a discounted price for new stock purchases.

When a shareholder doesn't want to buy additional stock, he can transfer the rights on the open market, giving someone else a chance to buy company stock at a discounted price. Since the offering rate is low, the company is likely to sell most or all of its newly available stock.

The ability to transfer means that if a current stockholder doesn't want to buy more, he can easily find someone who will. The only cat

...

...