Rejection of a contract in bankruptcy may not always accomplish a debtor’s goal to shed ongoing contractual obligations and liabilities, especially when dealing with employee benefit plans. On October 13, 2011, the Fifth Circuit Court of Appeals highlighted this issue in its opinion in Evans v. Sterling Chemicals, Inc ...
After a public consultation phase initiated at the end of 2010, the Portuguese Competition Authority (“PCA”) made available, at the end of July 2011, the final version of its “Guidelines on the Adoption of Remedies in the Control of Concentrations” (“Guidelines”). As clarified by the PCA, the Guidelines are “a set of de indications pertaining to the selection, design, execution and monitoring of remedies, within the procedure of previous control of concentrations between undertakings” ...
You’re the general counsel of a public company and you find out that one of your company’s stockholders intends to wage a proxy contest. Your board of directors and CEO are going to want some answers right away. How prepared are you and how do you respond? The average annual number of proxy contests has nearly doubled from 60 in 2001-2005 to 112 in 2006-2010. In 2009, activist shareholders were able to successfully gain board seats approximately 43 percent of the time ...
Although the currently effective Hungarian Civil Code does not name a call option as security, it does not prohibit the use of a call option as security either. The first question this raises, therefore, is whether Hungarian law permits the use of a call option as security? Naturally, this then creates more questions ...
The Federal Circuit recently resolved two issues of first impression as to how patent reexamination proceedings affect related patent infringement litigation. These two cases, Marine Polymer1 and Bettcher Industries,2 are likely to have a significant impact on both litigation and reexamination-proceeding practices, as well as the strategic interplay between them ...
As part of the implementation or reorganization of a business structure, the integration of a trust as a shareholder of an incorporated family business can prove to be an interesting tax and estate-planning tool. This holding vehicle is being used more and more in Quebec.INTEGRATING A TRUST AS A SHAREHOLDER OF YOUR FAMILY BUSINESSDIANA DARILUS ddarilus@lavery ...
This paper reviews judgments dealing with contract law issues relevant to commercial lawyers and business leaders. This paper also considers private international law conventions and treaties that are en route to domestic implementation, and are therefore relevant to commercial practice ...
On September 13, 2011, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) unanimously approved a final rule implementing Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Rule”) ...
The Ministry of Health recently issued Minister of Health Regulation No. 1148/Menkes/Per/VI/2011 on Pharmaceutical Wholesalers, which replaces and repeals two earlier decrees. The new regulation is aimed at protecting the public from dangerous drugs and drugs materials as well as improving previous regulations on pharmaceutical drugs ...
Adopting a related party transactions policy, with supporting protocols and procedures, will help to identify and deal with related party transactions within the corporation. Ultimately, this will reduce the risk of breaching the Corporations Act 2001 (Cth) or ASX Listing Rules (if relevant) and will protect shareholders' interests ...
Shareholder participation at the AGMs of large companies is notoriously low – just 0.3 per cent in 2009, according to Chartered Secretaries Australia. So it is not surprising to see repeated calls in the media for listed companies to introduce online participation at AGMs. This would allow shareholders to take part in meetings in their offices or homes via the internet, enabling them to follow the proceedings, submit questions and, of course, vote ...
The delivery of electronic board papers on iPads is becoming increasingly popular, particularly for non-executive directors. At board meetings, some directors may bring only an iPad, on which all their board papers are stored ...
A new Regulation of the Minister of Law and Human Rights No. M.HH-01. AH.01.01 of 2011 on the Application Procedures for Validating a Legal Entity and Approving Amendments to the Articles of Association and the Notification Procedures for Amendments to the Articles of Association and Changes to Company Data (the “MOLHR Regulation”) was issued on 1st April 2011 ...
The Minister of Forestry has issued Regulation No. P.18/Menhut-II/2011 on Guidelines for Borrow-to-Use Permits for Forest Areas (“MOF Regulation”), which replaces and repeals Minister of Forestry Regulation Number P.43/Menhut-II/2008. This new MOF Regulation is the implementing regulation of Government Regulation No. 24 of 2010 on Forest Area Utilization ...
On September 7, 2011, the Securities and Exchange (SEC) announced that it will not appeal the D.C. Circuit’s July ruling in Business Roundtable and Chamber of Commerce of the United States v. SEC, No. 10-1305, (D.C. Cir. July 22, 2011), where a unanimous panel of the D.C. Circuit vacated Exchange Act Rule 14a-11 requiring companies to give shareholders access to company proxy materials for the nomination of candidates to serve on the company’s board of directors ...
Hedge funds failed in their attempt to get EDT Retail Trust (EDT) wound-up after EPN EDT Holdings II, LLC (EPN) bid for EDT. EPN succeeded in voting down the threat. The hedge funds' attempt is a reminder that A-REIT bids present unitholders with avenues to challenge a bid which are not available to shareholders in a company. It is also a reminder that it is an approach that is not without risk ...
Independent expert reports are commissioned by company directors to assist shareholders in assessing a broad range of M&A transactions, including takeover bids, schemes of arrangement, related party transactions and shareholder approved acquisitions over 20%. The purpose of the reports is to provide shareholders with an objective assessment of whether the proposed transaction is 'fair and reasonable' from their perspective ...
The organization that controls most of the Internet's gTLD's (generic top level domain names, such as .com and .net) has approved the use of .xxx as a new gTLD. That has a number of trade-mark owners worried about the potential for reputational risk or damage to goodwill with the registration in the .xxx domain of their brands. The .xxx gTLD is for use by those involved in the adult entertainment industry ...
Last year’s takeover of Cadbury by US firm Kraft left a bitter taste in many mouths, not least the Cadbury workers in the Somerdale Plant near Bristol who were promised their jobs were safe but were then ultimately ‘rationalised’ by the American food giant ...
Last week FINRA released Regulatory Notice 11-39, Social Media Websites and the Use of Personal Devices for Business Communications, to supplement its previous Regulatory Notice 10-06, Social Media Web Sites, issued in January 2010. Since January 2010, firms have revisited their policies on social media and in light of improved technology, firms are increasingly allowing use ...
On August 17, 2011, the U.S. Court of Appeals for the Seventh Circuit affirmed a district court’s denial of class certification on the basis that the company’s process for reimbursing purchasers of a defective toy more efficiently distributed refunds to putative class members than a class action lawsuit would ...
A recent decision in the Full Federal Court has shown that while manufacturers are generally free to make goods according to a design that is not registered, care must be taken to ensure that those products are branded in a way that distinguishes them from the market leader ...
Your CEO calls you, as the general counsel of a public company, to tell you that a third party has made an unsolicited offer for the company. What are the first steps you should take? Types of Unsolicited Proposals. An unsolicited proposal may be a casual pass, where a third party informally approaches the company to discuss an acquisition proposal, or may be a bear hug letter, which will contain a formal proposal to buy the company and may include a price ...
The sustained growth in China’s primary sector[1] means for many international companies it is no longer a question of “should we go to China?” but rather “how to face the Chinese market?” This newsletter provides a brief outline of China’s primary sector and relevant regulations, as well as highlighting important risks and opportunities. 1. China’s primary sectorThe potential for further growth in China’s primary sector is immense: of China’s 1 ...
The Bribery Act 2010 came into force on 1st July 2011, which sets out four new bribery offences which can be committed by corporations and individuals. The Act assumes wide territorial jurisdiction and imposes severe sanctions. The Act is not retrospective. A bribe is defined as “a financial or other advantage”. All the old UK law, both common law and statute, is to be replaced by this legislation ...
