corporate operating agreements throughout dissertation homework help
Unit 9 Discussion Topic: Corporate Operating Agreements
Throughout this course, many discussion opportunities come up where you need
to respond to other people's opinions and comments. Then, respond to your
Discussion topic after you have completed your Reading.
Ron Cardigan, son of Camille and Ray (Camille’s first husband) has met with
Camille and Candie to form a limited liability company designed to be a place
where young future clothing designers can work as part of an internship before
entering fashion design school. Ron contributes 40% of the capital, and Camille
and Candie each contribute 30%. Because it was Ron’s idea, he assumes he will
receive more of the profits than Camille and Candie. Further, his contribution was
greater than each of theirs. Camille and Candie feel they should all split the
profits equally, as everyone has a unique talent that is being brought forth to run
the new business. A dispute over the profits arises, and ultimately a court has to
decide the issue.
Determine the following:
1. What law will the court apply?
2. In most states, what will result?
3. How could this dispute have been avoided in the first place? Assess fully.
Justify your answer using information from your Reading and be sure to:
4. Assess the laws that govern the limited liability companies [Uniform
Limited Liability Company Act (ULLCA)].
5. Evaluate how these laws frame our scenario and how a court would rule.
6. Conclude how Ron, Camille, and Candie could have avoided the dispute
by creating an operating agreement and integrating operating procedures
into a written agreement.
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