Corporate Law Developments February 3, 2017: ABA RELEASES FIRST COMPLETE REVISION TO MODEL BUSINESS CORPORATION ACT SINCE 1984; GROWTH OF TRIPLE BOTTOM LINE “BENEFIT CORPORATION” ENTITIES CONTINUES; AND CFPB’S PROPOSED RULES PROHIBITING MANDATORY ARBITRATION CLAUSES IN CONSUMER CONTRACTS UNLIKELY TO BE ADOPTED BECAUSE THEY WERE NOT FINALIZED PRE-INAUGURATION

by Jeanne R. Solomon and Stacy Stecher

This week’s corporate law news roundup includes discussions of the American Bar Association’s release of its first complete revision to the Model Business Corporation Act since 1984; the continued adoption (or consideration) by U.S. states of legislation allowing the incorporation of benefit corporations (for-profit corporations that voluntarily meet higher standards of corporate purpose, accountability and transparency by enabling directors to consider the interests of workers, society and the environment as well as those of stockholders), with 31 U.S. states now having benefit corporation legislation and another 8 states considering such legislation; and the unlikelihood that the proposed U.S. Consumer Financial Protection Bureau (CFPB) rules prohibiting mandatory arbitration clauses in consumer contracts will be finalized in the near or medium term now that the anti-consumer regulation Trump administration has come into office.

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The art of negotiating divorce settlements

A good divorce is one that is as painless as possible. Sorting the finances out can be a painful part of the divorce process. The cost – both financial and emotional – of court litigation should not be underestimated. The delays in the court system mean that proceedings are often dragged out. Continue reading

Mirror, mirror on the wall; will this press arbitration scheme do any good at all?

Once upon a time, a long, long time ago, there was an investigation into press behaviour. Lord Leveson heard from witnesses, tale upon tale of poor press conduct, and ultimately issued a plethora of sensible recommendations for press regulation with a view to ensure that the watchdog and bloodhound of society that is the press, could no longer savage the rights and reputations of the public. Continue reading

The dawn of a new era for resolving disputes in relation to children

We have a lot to celebrate with the recent launch of the new Children Law Arbitration Scheme. Thanks to the introduction of this new form of dispute resolution, arbitration can be used in children cases to find fast, effective and flexible solutions. Continue reading

Family Arbitration is no dress rehearsal: it is the first and last night of the show…Mostyn J’s decision in DB v DLJ

Mostyn J’s judgment in DB v DLJ last week deals with the routes of challenge and appeal available for those with family arbitral awards. It is a legal treasure-trove, full of jewels for the practitioner: a thorough scrutiny of the arbitral process in both civil and family cases; an in-depth analysis of the court’s power to interfere with an arbitral award; judicial guidance on what constitutes a mistake or unforeseeable event; and procedural guidance for those seeking to enforce or challenge an arbitral award. Continue reading

What about the children?!

Separating or divorcing is extremely difficult, especially when a couple has children.  As Suzanne Kingston pointed out in her blog post earlier this week (http://bit.ly/1Sfko9W), the process can be even more difficult on the children themselves.  Children do not fully understand what is going on and often take responsibility for what is happening.  It is not uncommon for children to blame themselves and feel guilty about their parents’ break up and to think ‘my parents are fighting because I’ve been naughty’ or ‘if only I could be better, my parents might stay together’. Continue reading

The Financial Remedies Working Group

The Financial Remedies Working GroupThe Financial Remedies Working Group (FRWG) was formed in June 2014 and is chaired by Nicholas Mostyn J and Stephen Cobb J. It consists of members of the Judiciary, Practitioners and Court Officers and was set up “to explore ways of improving the accessibility of the system for litigants in person and to identify ways of further improving good practice in financial remedy cases…confined to matters of practice and procedure”. Continue reading

Is the Meal Ticket for life in tatters?

Is the Meal Ticket for life in tatters?The Court has emphasised that sharing stops on divorce – so logic dictates that with the marriage over, sharing has no place in the assessment of maintenance. The correct goal is to empower individuals, after a divorce, to make the transition to independence. Continue reading