The opportunity to make a substantial investment in a private company can be exciting — it offers the potential to share in the rapid growth of the company and may permit the investor to participate on the company’s governance team. But private company investing is not for the faint of heart as it also comes
People typically enter into business partnerships with the best of intentions. But when things go awry down the road, the minority partner may claim that the majority owner violated a fiduciary duty by failing to act in the best interests of the business or by acting so recklessly that it amounts to gross negligence. Before
In a real-life case of adding insult to financial injury, companies harmed by the disloyal actions of their former partners, officers, managers or employees (the “former insiders”) may also have to pay their legal fees when the company sues them to recover for their misconduct. In this situation, if the company’s governance documents (and specific