Insights on Corporate Law

Update On April 25, 2024 Edmunds Legal issued a Client Alert discussing the Federal Trade Commission’s (FTC’s) new rule prohibiting for-profit companies from entering into non-complete agreements with service providers.  In a significant turn of events, the U.S. District Court for the Northern District of Texas has blocked the FTC from implementing the new rule…

August 1, 2024 By: Catherine Edmunds On August 1, 2024, amendments to the Delaware General Corporation Law (the DGCL) impacting stockholder rights are set to become effective. The amendments apply prospectively and retrospectively. They primarily have the impact of codifying prevailing market practice into law after three controversial case holdings: West Palm Beach Firefighters’ Pension…

It’s fun to see another client in the news. Point Loma Cares is fulfilling its mission of being an active voice in the community, promoting the safety of its residents.

On April 23, 2024 in a 3-2 vote, the Federal Trade Commission (FTC) issued a rule prohibiting for-profit companies from entering into non-compete agreements with service providers. What are non-compete agreements? Non-compete agreements prohibit company employees and service providers from working for competitors or starting their own competing business after they leave the company.  The…

Edmunds Legal, PC January 11, 2024 Set your Business up for Success in 2024:  By Haley Kopp As the new year begins, it’s a great time to check in and ensure your business is set up for another successful year. Below are a few items to think about for the upcoming year. Corporate Governance As…

Edmunds Legal, PC Client Alert: December 4, 2023 Prepare for Corporate Transparency Act Reporting Requirements Beginning January 1, 2024, the Corporate Transparency Act will require many companies to report their beneficial owners to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”). Failure to comply with the new reporting requirements may result in hefty fines…

Edmunds Legal, PC represented SoliSYSTEMS, a flex benefit card technology company, in its acquisition by NationsBenefits, a leading provider of supplemental benefits, flex cards, and member engagement solutions for health plans. More information about the companies and the transaction can be found here: https://www.businesswire.com/news/home/20221010005188/en/NationsBenefits-Acquires-SoliSYSTEMS-to-Expand-its-Flex-Benefit-Card-Technology

If you are looking to raise money for your startup and want to sharpen your thinking on valuation, capitalization and term sheets, I have a presentation for you! My part starts at 16:30, stay for the discussion of dilution at the end. https://www.youtube.com/watch?v=OMORJ6Tf72M

Preliminary Thoughts for Founders When Licensing their Intellectual Property What rights do you have in the Intellectual Property (IP) and what rights can you sell? This may seem like an easy question to answer. As a founder, you own your IP, right?  Has proper care been taken in getting every employee and independent contractor who…

I have discussed vesting in a prior blog post “Let’s Talk about Vesting,” now we can focus on acceleration of vesting. What does acceleration of vesting mean? Rather than waiting for equity to vest over time, a service provider’s equity can become partly or fully vested upon the occurrence of certain events.  These events and…

Know the difference between stock, common stock, preferred stock, options, units and membership interests.

What does vesting mean? Founders and key employees are often granted shares of stock or options to purchase shares of stock with vesting.  Vesting means that the founder/key employee will earn the shares over time by continuing to provide services to the company.  How does vesting work? Startups are generally set up with shares vesting…