law 514 corporations instructor: dwight drake corporations law a 514 fall 2007 instructor: dwight...
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Law 514 Corporations Instructor: Dwight Drake
Corporations
Law A 514
Fall 2007
Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Contact Info – Office Hours
Email: djdrake@u.washington.edu
Phones: 206.616.6385, 425.281.1493, 425.222.5988, 480.272.6719
URL:http://faculty.washington.edu/djdrake/Corporationsindex.shtml
Office Hours: Room 416 - Tuesday 3:30 p.m to 5:00 p.m. - Whenever else you can catch me!
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Course Objectives
• Substantive knowledge of corporations, including basic business concepts and alternative entity options.
• Enhance development of basic lawyer skills: Analytical skills
Dig Out Skills
Communication Skills
Collaborative Skills
• Enhance personal development of professional goals
Law 514 Corporations Instructor: Dwight Drake
The Lawyer’s Role as an Advisor to Business Owners, Professionals and Entrepreneurs
Flash Presentation (20 Min. approx) byDwight Drake
www.law.washington.edu/Career/Handouts/FlashNote: It takes a few minutes to load
Law 514 Corporations Instructor: Dwight Drake
What Course Is Not!
• Hide the flags.
• Hunt for the flags.
• Memorize the flags.
• Wave flags on exam – score!
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Some Tips…
• Do All Assigned Readings
• First Analyze All Case Studies Solo
• Then Collaborate with Teammates
• Carefully Review Team’s Final Product
• Think About Class Dialogue
• Consistently Write Personal Summary
• Get ahead – Stay ahead!
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Grade Criteria
• Case Study Team Game – 30%
• Final (With One Exception) – 70%
No tricks, gimmicks or time pressure
Focus on case studies and class discussion
Short essays based on fact patterns
Can use any non-living thing
Premium on knowing scope of materials
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Case Study Team Game
• Team Size - 5
• Case Study Memo from each team due on scheduled discussion date (20 total)
• One member of team must be prepared to verbally advise client
• Team selected to present in class based on random drawing
• Team members encouraged to collaborate on every case study
• Author’s name must be on Case Study Memo
• More than one Case Study Memo may be submitted by a team
Law 514 Corporations Instructor: Dwight Drake
Final Opt-Out Option
• Author Seven Case Study Memos
• Collaborate on 15 Case Studies with Team Members
• Be Prepared If and When You are Up
• Attend class regularly
• Grade B
Law 514 Corporations Instructor: Dwight Drake
Case Study Memo Format
• Summary statement of client challenges and/or key issues
• Additional facts (if any) that would help analysis
• Summary of your conclusions and related rationale
• Analysis, including (where appropriate) rationale for rejected alternatives
Law 514 Corporations Instructor: Dwight Drake
Writing Basics• Four “C”s – Concise, Credible, Confident, Convincing
• Keep it tight, real tight. No needless words.• Use strong, precise verbs.• Avoid overstated adjectives.• 100% Intellectual honesty – no finessing.• Average sentence length: 20 words.• Avoid multiple negatives.• No “shall”, “provisos”, “and/or” and other drafting
jargon.• Write for the normal reader, not the intellectual.• End sentences emphatically.• Organize, then draft.• Edit, edit, edit.
Law 514 Corporations Instructor: Dwight Drake
Legal Immortal Beings (“LIBs”)
• Corporations
• Partnerships
• Limited Liability Companies
• Trusts (Many Types)
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
US BusinessesProjected Revenues 2007
Corporations $ 21.58 Trillion (84.2%)
Sole Proprietorships $ 1.23 Trillion (4.8%)
Partnerships $ 1.35 Trillion (5.3%)
Limited Liab. Companies $ 1.45 Trillion (5.7%) Total $ 25.61 Trillion
Law 514 Corporations Instructor: Dwight Drake
LAWYER ROLES
• Litigator - Gladiator / Mudslinger
• Transactor - Deal Maker/ Paper Pusher
• Planner - Strategist / Trouble Maker
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Law 514 Corporations Instructor: Dwight Drake
Why Incorporation?
• Continuity– No Death
• Capital Formation
• Limited Liability Protection
• Interests Transferability
• Centralized Management
• Tax Planning
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
Shareholders
Elect
Key Corporation Players
Directors
Officers
ElectReg. Agents
Appoint
Employees
Hire
Law 514 Corporations Instructor: Dwight Drake
Closely Held Businesses in America
• 25 million businesses
• 99% of all employers
• 50% of all private sector employees
• 70% Americans first job
• 60% to 80% net new jobs
• 14 times more patents per employee
• 50% plus of all U.S. sales
• Career answer for planning professionals
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
1-1
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
15-10
Duncan and Sandy Smith Plan
Daughter Trust
Son Trust
Daughter Trust
GC Trust – 1
GC Trust – 2
GC Trust – 3
GC Trust – 4
GC Trust – 5
GC Trust – 6
Duncan and Sandy Living Trust
PersonalResidenceTrust
FamilyL.L.C.(Growth)
FamilyL.L.C.(New)
DynastyInsuranceTrust
CharitableRemainderTrust
CCorporation
HoldingS Corp(Parent)
AlmaMater
Qualified Retirement
Plan
QSSSCorp(One)
QSSSCorp(Two)
IncomeCharitableDeduction
Assets
Remainder
Contributions
Distributions
Distributions
Compensation
Distributions
HomeTermUse
Assets
Assets
Cash
Remainder
Income
Units
Units
Income,support
Law 514 Corporations Instructor: Dwight Drake
Copyright 2005 Dwight Drake. All Rights Reserved.Business Planning: Closely Held Enterpriseswww. drake-business-planning.com
BusinessEntity
Antitrust
CompetitorsConsumers
Creditors
InvestorsRev. Authorities
Foreign Entities
Creative Sources
Employees
ConsumerProtection
UCC/Bank’r
SecuritiesCorp Fin
Emp. Law/Benefits
Tax
Int. Law
IP
Planet Earth
Envir. Laws
Law 514 Corporations Instructor: Dwight Drake
Economic Globalization• A process of integrating national economies
through trade, investment, and capital, technology and labor flows
• Pre-WWI Globalization: Steam engine, railroad, telegraph
• War periods – complete retrenchment
• Post WWII actions – IMF, World Bank, ITO, GATT, WTO
Law 514 Corporations Instructor: Dwight Drake
Globalization Driving Forces
• Technology, innovation
• Evolution of money markets
• Failure of import-substitution countries
• End of Berlin Wall and Soviet Union
• Boom ’90s – Near universal buy-in
• Proliferation of multinationals
• Spread of democracy
Law 514 Corporations Instructor: Dwight Drake
Shared Fears
• More risks, anxieties from new unknowns, more and different competitors
• Spreading gaps between Have and Have-nots, Skilled and Unskilled
• Need for different government – referee, trainer, safety net
• Deadly opposing forces
• Environment and oil
• Preservation of free market competition
Law 514 Corporations Instructor: Dwight Drake
Major U.S. Globalization Challenges
• Huge competition for skilled and unskilled
• America’s huge oil advantage / dependence
• America’s toughest antitrust laws
• America’s dismal savings capacity
• America’s neglected, brewing mega financial crisis
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