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If you’re an employee with a non-compete in your employment agreement, and you’re considering leaving your job and working for a competitor, you may be thinking, “What’s the worst that can happen?” It’s a great question, and it’s exactly what I’m going to talk about today.
Attorneys that represent shareholders of publicly traded companies in securities litigation are intimately familiar with the pre-suit demand required by the corporate law of many states. The purpose of the demand is to give the board of a company an opportunity to investigate and remedy alleged wrongdoing on the company’s behalf before a shareholder is permitted to bring a derivative action.
When reading a recent New Jersey court’s opinion regarding an employee of an LLC claiming to have been given a share of ownership of the company by its sole owner, I couldn’t help but think of method acting – the technique in which “an actor aspires to encourage sincere and emotionally expressive performances by fully inhabiting the role of the character.” (Cite). Dustin Hoffman, Heath Ledger and Daniel Day-Lewis all used method acting to deliver outstanding performances. Although a putative LLC owner doesn’t need an agent, “fully inhabiting the role of” an LLC owner is a critical part of getting a court to recognize an ownership interest in the event of a dispute.
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