On October 30, 2015, the US Securities and Exchange Commission approved rules to allow companies to use crowdfunding to offer and sell securities. This is what is called regulation crowdfunding, and it has certain rules in place that allow investors and companies to benefit under the law. What is Regulation Crowdfunding Exactly? No doubt you have heard of crowdfunding. If…
Preemptive rights give the incorporators of New York corporations the opportunity to protect shareholders from dilution in the event additional shares are issued in the future. Unlike most states, preemptive rights are not default rights and should be explicitly included in the certificate of incorporation if the incorporators want the rights to apply to all shareholders. In order to allow…
After forming a limited liability corporation (LLC) in the state of New York, the entity must publish two separate public notices of their formation within 120 days. These publications need to take place in two different general circulation newspapers, one daily-circulation and one weekly-circulation, that are both published in the county of the LLC’s origin, as directed by the…