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Unincorporated Business Entities Section III.3: Limited Liability Partnership Prof. Amitai Aviram [email_address] College of Law University of Illinois Copyright  ©  Amitai Aviram.  All Rights Reserved S07
Statutory Foundation of LLPs ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Limited Liability Partnerships Formation of an LLP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Limited Liability Partnerships Foreign LLPs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Limited Liability Partnerships Foreign LLPs ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Limited Liability Partnerships Misc. differences between GPs/LLPs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
History of the LLP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
History of the LLP ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
LLPs as Law Firms’ Entity of Choice Glater, New York Times (Jan. 10, 2003) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Chinks in the LLP Armor? ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Narrow Non-Liability Statutes ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Narrow Non-Liability Statutes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Unshielded Obligations ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Uns hielded Obligations ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Uns hielded Obligations ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Uns hielded Obligations ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Liability of an LLP Partner Dow v. Donovan   [D. Mass. 2001] ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Liability of an LLP Partner Dow v. Donovan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Megadyne Information Systems v. Rosner, Owens and Nunziato   [Cal. CA 2002] ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Liability of an LLP Partner Megadyne Information Systems ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved 11/95 11/98 12/95 11/96 5/97 11/97 1/98 8/98
Losing the Limited Liability Shield ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Contribution Requirements ,[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Contribution Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Contribution Requirements ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Losing the Limited Liability Shield Contribution Requirements ,[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Hypo ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Hypo ,[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Hypo ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Hypo ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Hypo ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 1. Shareholders’ Voluntary Loan ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 2. Issuing Shares at Original Price ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 3. Issuing Shares at Reduced Price ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 3. Issuing Shares at Reduced Price ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital “Penalty Dilution” – Intuitive Explanation ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital “Penalty Dilution” – Intuitive Explanation ,[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital   “Penalty Dilution” – Numerical Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital No Dilution if Everyone Participates ,[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital Problems with “Penalty Dilution” ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 4. Shareholder Loans at Above-Market Interest Rate ,[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 5. Mandatory Capital Contributions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved
Raising Additional Capital 6. Turning to Outsiders ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Copyright © Amitai Aviram. All Rights Reserved

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Unincorporated Business Entities Section - Limited Liability Partnership

  • 1. Unincorporated Business Entities Section III.3: Limited Liability Partnership Prof. Amitai Aviram [email_address] College of Law University of Illinois Copyright © Amitai Aviram. All Rights Reserved S07
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