Connecticut Law Firms Poised to Compete for Corporate Clients
Publisher: Connecticut Law Tribune
December 8, 2017
Lane Watson was quoted in an article, "Connecticut Law Firms Poised to Compete for Corporate Clients," published by the Connecticut Law Tribune. The article discusses recent reforms to state laws governing corporations and limited liability companies in Connecticut, which will allow the state to compete with Delaware and other large commercial jurisdictions where many companies choose to incorporate. Similar to Delaware law, Watson told the Connecticut Law Tribune that the new Connecticut law allows corporations to correct prior "defective actions" as well as undertake "two-step mergers" without shareholder approval. He added that allowing two-step mergers without shareholder approval is seen as another way corporations can be acquired, giving businesses a reason to incorporate in Connecticut and not elsewhere. Watson added that the new LLC law extends some concepts from corporate law into the realm of LLCs, including a ban on LLCs making distributions to members if doing so would make them insolvent, and allowing LLC members to bring a "derivative" lawsuit claiming there has been a breach of fiduciary duty on behalf of the LLC itself.