Documente Academic
Documente Profesional
Documente Cultură
Marco Ventoruzzo
NLS of India University, Bangalore
Spring 2009
ROSS A. WILSON v. LOUISIANA-PACIFIC RESOURCES, INC.
(138 Cal. App. 3d 216)
ROSS A. WILSON v. LOUISIANA-PACIFIC
RESOURCES, INC.
(138 Cal. App. 3d 216)
Limited
Limitedliability
liabilitycompanies
companies
type of minimum
country setup costs
company capital
Austria GesmbH 35,000 3,500
UK Ltd 2 425
other EU
germany
1999
1999 2001
2001 2003
2003
Centros
Centros Uberseering
Uberseering Inspire
InspireArt
Art
Source: Becht et alt., 2006
(c) Marco Ventoruzzo 14
Par. 23(5) “Aktiengesetz”: “The
articles of incorporation may opt
out of specific provisions of this
Statute only if the Statute
explicitly so permits. The articles
may contain additional
provisions, except as to matters
that are conclusively dealt with in
this Act.
(c) Marco Ventoruzzo 15
Some elements looked at to disregard the
corporate structure
(DeWitt test – 540 F.2d 681 (4th Cir.1976)
• Undercapitalization
• Failure to observe corporate formalities (including
absence of corporate records, accounting, etc.)
• Non-payment of dividends
• Siphoning of corporate funds by dominant shareholder
(more generally, commingling of funds and assets
between individual sh. and corporation)
• Non-functioning of officers and directors beside
defendant
• Passivity of other sh. other than defendant
• …
Piercing
Piercing: different approaches
Incorporating and Piercing
USA vs.
Some Civil Law Countries
Practical Implications?
Your attempts are just
mildly annoying…
Incorporation Process
(in some civil law countries)
Period (duration)
Purpose
Capital
Internal org.
Period (duration)
Purpose
Capital
Internal org.
B 10 10
Situatio
110
n1
C 100 100
B -5 0
Situatio
95
n3
C 100 95
B 20 5
Situatio
5
n4
C - 15
(c) Marco Ventoruzzo
0 32
(c) Marco Ventoruzzo 33
No stockholder shall sell to third parties
his stock or any portion thereof without
first having given written notice of such
intention to this Corporation and to each
other stockholder.
During the fifteen days succeeding the
announcement each other stockholder
shall have the right to purchase such
stock at the same conditions offered by
third parties.
(c) Marco Ventoruzzo 34
No stockholder shall sell or otherwise
transfer his stock or any portion thereof
without first having given written notice of
such intention to this Corporation and to
each other stockholder. Upon such notice
the Corporation shall promptly evaluate
the stock…
During the fifteen days succeeding the
announcement each other stockholder
shall have the right to purchase such
stock at the price set forth by the
Corporation… (c) Marco Ventoruzzo 35
Share transfer restrictions: different
approaches
Disclosure
Procedural rules
Substantive fairness
(c) Marco Ventoruzzo 52
(c) Marco Ventoruzzo 53
Suing the directors
shares
shares
s
a re
sh
shares
shares
Merger vs. Consolidation
(c) Marco Ventoruzzo 64
(c) Marco Ventoruzzo 65
(c) Marco Ventoruzzo 66
(c) Marco Ventoruzzo 67
(c) Marco Ventoruzzo 68
Takeover of EDF-Transalpina over Edison
euro (October 2005)
shares
(c) Marco Ventoruzzo 70
(c) Marco Ventoruzzo 71
(c) Marco Ventoruzzo 72
Average largest shareholder (%)
51,98
48,14
46,13
37,91
18,26