Corporate attorneys Jon Gworek and Dave Czarnecki will serve as moderator and panelist, respectively, for the ABA Business Law Section Annual Meeting CLE panel Should Venture Capital Take Another Look at The Use of Alternative Entities? Historically, the vast majority of investments made by VC firms have been made in corporations, not LLCs. A number of recent Delaware Chancery Court decisions illustrate the difficulty that venture capital Boards face in making decisions that will get the benefit of the business judgment rule and the inherent complexities and risks associated with serving on the boards of venture-backed companies. The Delaware LLC statute allows the waiver of all duties except for those inherent in the covenant of “good faith and fair dealing.”
The CLE will examine the various factors and considerations that startups and venture capitalists should weigh in the decision as to whether LLC’s may present a viable and attractive alternative to corporations. It will be held on Friday, September 14, at 2:30pm. Click here for more information and to register.