Message from the Firm

By Brad Cohen

In the aftermath of Enron, corporate accountability has become serious business for directors of public and non-public companies. The prestige value of being a director of a company has to be evaluated in light of the enhanced scrutiny that directors are under. In their article, Adam and Robin address some of the ways directors can insulate themselves from personal liability.

Employee relations remains a constantly changing area of the law. An employee handbook can assist companies in managing their work force in a consistent manner and in accordance with current employment trends and laws. Mark Terman's article highlights the importance of maintaining an updated employee handbook that reflects new laws and addresses changes in and growth of your business.

Buy-sell agreements are a valuable tool to ensure the smooth transition of company ownership upon various events, including death, disability, retirement, divorce, bankruptcy and sale. When there is a change in ownership, however, the Internal Revenue Code provides substantial restrictions on losses. Understanding these rules and incorporating provisions in the buy-sell to avoid these loss limitations can create substantial economic benefits to the owners and the company. Kalyani and Robin describe those loss limitations in their article and suggest methods to avoid them.

As always, if you have any questions or comments, please contact me or one of the attorneys who has written an article.

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