Pursuant to New Jersey corporate law, directors are trustees for the entire body of the owners. Directors owe loyalties to all shareholders. If they disregard the rights of the majority shareholders, minority shareholders, or the corporation itself they could be liable for a breach of fiduciary obligations or duties.

Continue Reading Business Judgement Rule Inapplicable if Director is Engaged in Self-Dealing, Unconscionable, or Fraudulent Activities/Decisions

New Jersey is now among the first three states to have its Hemp Program approved by the United States Department of Agriculture (the “USDA”). The 2018 Farm Bill legalized industrial hemp production nationwide by removing hemp and its derivatives, such as CBD, from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp.

Continue Reading Growing, Processing, and Handling Hemp Now Legal in New Jersey – Apply Today

New York Courts do not have the power to order the dissolution of a corporate entity that operates in the State of New York, but was formed under the laws of another state. In Re Matter of Raharney Capital, LLC v. Capital Stock, LLC, 138 A.D. 3d 83 (1st Dept. 2016).

In that case, Plaintiff, Raharney Capital, LLC, (“Raharney”) a Delaware limited liability company with a principal place of business located in the State of New York filed an action against Capital Stock, LLC, (“Capital Stock”) in the State of New York seeking juridical dissolution pursuant to Section 18-802 of Delaware’s Limited Liability Act of a Delaware entity formed by Raharney and Capital Stock. That entity, Daily Funder was a Delaware Limited Liability Company, with a principal place of business in New York City. Raharney and Capital Stock each owned 50% of Daily Funder.

Continue Reading New York Courts Will Not Dissolve Out-of-State Corporate Entity

A valuable feature of an Individual Retirement Account (IRA) or a Qualified Retirement Plan (401k, 403b, etc.)(QRP) is the ability to invest without incurring contemporaneous taxes on the investments held in the account. This benefit is available to both the original owner of the account and to designated beneficiaries who inherit the account after the owner’s death. For this reason and others, it is very important to name appropriate beneficiaries for an IRA or a QRP account.

Continue Reading Hidden Risks and Costs of Naming Minors as Direct Beneficiaries of an IRA or Qualified Retirement Plan

Retail and restaurant Chapter 11 bankruptcy filings continued to grab headlines in 2019. According to CNBC, there were 23 retail bankruptcies in 2019, compared with 17 in 2018.

Six (6) retailers and one (1) restaurant chain that were on our “Watch List” in 2019 filed for Chapter 11 protection – Charming Charlie (Part 2), Forever 21, Payless (Part 2), Charlotte Russe, Things Remembered, Gymboree (Part 2), and Perkins & Marie Callender.

As the New Year unfolds, following are 10 retailers to watch for possible Chapter 11 filing(s) in the year ahead.

Continue Reading Retailers to Watch for a Bankruptcy Filing in 2020

Recently, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) was enacted into law. The SECURE Act makes significant changes to the administration of Individual Retirement Account (“IRA”) and Qualified Retirement Plan (401k, 403b, etc.)(“QRP”), and was effective on January 1, 2020. For many people, an IRA or QRP is one of their most valuable assets. Because these assets result from hard work to create and maintain the account, owners should be aware of the changes found in the SECURE Act and how they may affect the owner’s estate plan.

Continue Reading Major Changes are Impacting IRAs and QRPs – How is your Estate Plan Affected?

We live in a time where information flows freely, quickly, and openly to both individuals and companies alike. As a result, the availability of a criminal record search, or other similar search concerning an individual is easily obtained. In fact, a search can often be performed without the consent or authority of the person who is being searched. For these reasons, employers now typically require a mandatory background checks prior to hiring. As a result, many employers will not hire a prospective employee should they possess a criminal record of any nature.

Continue Reading Expungements Erasing Your Mistake

In June 2019, the Legislature passed the New Jersey Hemp Farming Act (the “HFA”). This is great news for the “Garden State.” New Jersey has hundreds of thousands of acres in farmland and hemp cultivation may prove to be a lucrative business.

Previously, hemp cultivation in New Jersey was limited to non-germinating seeds and stalks of the hemp plant and confined to individuals who were approved to collaborate with educational institutions to research the plant. Because the HFA now legalizes the sale of products originating from any part of the plant, there should be an expected increase in the sale of both raw hemp and hemp products.[1]

Increases in sales may also drive production and manufacturing costs down as well. State Senate President Stephen Sweeney stated that New Jersey’s propensity for agricultural production “has the capacity and ability to capitalize on new opportunities for hemp products that will create and expand economic opportunities.[2] Recently, one Canadian cannabis firm spent hundreds of millions of dollars to enter the United States hemp market.[3] Hemp is increasingly viewed as a strategical investment and growth opportunity. Now the Garden State can join a dozen other states who have already created procedures for hemp production.

The industrial hemp craze that has been sweeping the United States is now taking root in New Jersey. However, it is important to note that individuals and entities must still apply for the requisite licenses and approval to work with hemp and to comply with reporting requirements after permission to work with hemp has been authorized. Otherwise, they may be subject to the same penalties as those related to illegal marijuana production and sales.

 

 


[1]           See https://www.lindabury.com/firm/articles-resources/immediate-impact-of-the-new-jersey-hemp-farming-act.html

[2]           See https://www.nj.com/business/2019/08/hemp-marijuanas-mild-cousin-just-got-the-green-light-in-nj.html

[3]           See https://mjbizdaily.com/canadian-marijuana-firm-cronos-spending-300-million-to-enter-us-hemp-market/