Business Law and Corporate Law

Shareholder and LLC member lawsuits present complex legal challenges for business owners, involving critical distinctions between derivative and individual claims. Understanding procedural requirements, defense strategies, and the significant differences between Delaware and California law can help executives protect their companies from costly litigation and minimize exposure to member claims.

Companies must prepare for shareholder activism before it emerges, yet many fail to execute standard preparedness strategies effectively. While conventional wisdom advises assessing vulnerabilities, preparing communications protocols, and updating governance documents, inadequate implementation of these practices can create dangerous gaps in a company's defenses against activist campaigns.

The SEC has proposed rescinding Rule 14a-8, which governs federal shareholder proposal requirements, potentially shifting control to state law and company governing documents. This regulatory change could significantly alter the shareholder proposal landscape and make Texas an increasingly attractive jurisdiction for corporate incorporation. Companies must evaluate their governance documents and consider strategic implications as the proxy solicitation framework undergoes modernization.

For most businesses, claims filed by current or former employees are inevitable. Companies, especially those with particularly large workforces, must balance various interests when deciding what to do when faced with litigation, or the threat of litigation.

Shareholder and LLC member lawsuits present complex legal challenges for business owners, involving critical distinctions between derivative and individual claims. Understanding procedural requirements, defense strategies, and the significant differences between Delaware and California law can help executives protect their companies from costly litigation and minimize exposure to member claims.

M&A comes with its own language, structures, and complexities. Our new M&A Spotlight series is designed to make them easier to navigate.

The U.S. Small Business Administration has set new annual fee rates for Small Business Investment Companies' debentures for fiscal year 2027, with standard debentures at 0.3000% and accrual debentures at 0.8710%. These fees apply to any SBIC receiving debenture commitments between October 1, 2026 and September 30, 2027, regardless of when the debentures are actually drawn.

Forget what you thought you knew about startup funding. According to Crunchbase, billion-dollar rounds have moved from anomaly to expectation. In the first half of 2026, 60% of global startup funding flowed to rounds of $1 billion or more — and in the U.S., that figure jumped to a staggering 73%.

Three major space and defense technology companies secured significant funding rounds in August, with investments totaling over $1.5 billion. The funding activity spans hypersonic defense systems, satellite manufacturing, and orbital computing infrastructure, attracting participation from major financial institutions and venture capital firms.

As artificial intelligence adoption accelerates across enterprises, a critical gap has emerged between implementation and governance. While four in five organizations now deploy generative AI in at least one business function, only 38% have established comprehensive policies defining acceptable use, creating significant risks around data security, intellectual property, and regulatory compliance that demand immediate attention.

The SEC has proposed amendments to modernize proxy solicitation rules by eliminating annual report delivery requirements, removing certain filing obligations, and shortening mandatory waiting periods. These changes aim to align proxy processes with electronic communications and current market practices, though they may shift greater responsibility to investors for retrieving information and reduce time for certain shareholder activities.

Companies must prepare for shareholder activism before it emerges, yet many fail to execute standard preparedness strategies effectively. While conventional wisdom advises assessing vulnerabilities, preparing communications protocols, and updating governance documents, inadequate implementation of these practices can create dangerous gaps in a company's defenses against activist campaigns.