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Cosmetic CDMO Market to Show 5 8% CAGR Through 2034 Amid

Two Common Threshold Issues in LLC Ownership Disputes

A corporate director generally cannot obtain privileged corporate documents when that director has an improper purpose for obtaining the documents or is acting adversely to the company’s interests. A company may be able to shield its privileged communications from a director.

Delaware Declines Subject Matter Jurisdiction Over Judicial Dissolution of Foreign Entities | Farrell Fritz, P C

Delaware Declines Subject Matter Jurisdiction Over Judicial Dissolution of Foreign Entities | Farrell Fritz, P C
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Holes in Shotgun Buy-Sell Agreement Keep Deadlock Dissolution Petition Alive | Farrell Fritz, P C

The Shotgun Buy-Sell Provision, Deadlock, and Trigger Pull here the New York theatre of litigation concerning the Pennsylvania-based cosmetic manufacturer, Process Technologies and Packaging, LLC, a Delaware LLC (“PTP”).  A brief recap: PTP is owned, 51% and 49% respectively, by members Kolmar and Lard-PT.  Ownership is governed by a comprehensive Third Amended and Restated Operating Agreement (the “Operating Agreement”), which creates a board of managers with general management authority, but requires unanimous consent for certain specified major decisions (“Reserved Matters”). The Operating Agreement contains a shotgun buy-sell agreement as a deadlock resolution mechanism: Section 10.2(a) defines the trigger as a failure of the CEOs of the two members to reach a resolution within 20 days of meeting to discuss the matters giving rise to the deadlock or breach.  Section 10.2(b) gives either member the option to give notice to the other of its intent to implement

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