Fort Worth Business Attorneys & Lawyers

Many are unaware about the different types of bankruptcy they could be filing for. We’ve heard about the different chapters but don’t know which exactly would fit our needs best. The chapter just refers to the chapter the specific type of bankruptcy is located in Title 13 of the United States Bankruptcy Code.  

Chapter 13 bankruptcy is sometimes referred to as “reorganization” bankruptcy for individuals.

How is Chapter 13 different than Chapter 7?

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Rule 145: What is it?

Rule 145 is an SEC rule that allows companies to sell certain securities without first having to register the securities with the SEC.  This specifically refers to stocks that an investor has received because of a merger, acquisition, or reclassification.

When Registration Is Required Under Rule 145

In addition to allowing certain types of securities to go unregistered, Rule 145 also requires that the following transactions must be registered if security holders vote on such transactions:

• Reclassification of securities that will replace one security for a different one. 
• A merger, consolidation, or acquisition where the securities of one corporation or company are e

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What is Liquidation Preference?

Liquidation preference determines the payout process or the distribution of stocks if the company pays dividends, enters into a merger, or liquidates the company. Liquidation preference means the company's investors or the preferred stockholders receive their investment back first in case the company liquidates.

Liquidation preference determines who gets first and how much when the company is liquidated, sold, or declares bankruptcy. Liquidation preference is associated with the preferred convertible stock. It explains how the proceeds are divided and shared.

For example, a holder of preferred stock has a liquidation preference equal to $30 million and the company is sold. Then the holder will get the first $30 million before the

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Experts will tell you that Wyoming is a great state for starting an LLC. Wyoming enjoys a positive reputation for being pro-entrepreneur, and for providing quick and easy formation of an LLC. LLCs in Wyoming additionally enjoy a variety of tax breaks and other benefits. Here’s a look at what it takes to form and operate an LLC in Wyoming.

Wyoming makes it as easy as possible to form an LLC in the state. Nevertheless, it is highly recommended that you consult with a professional, like an experienced business attorney, before starting your LLC formation process.

Wyoming LLC: What Is It?

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What Are Cumulative Dividends?

If a dividend is sharing company profits to shareholders, then a cumulative dividend is a distribution made to the holders of special "preferred" shares regularly. It is unrelated to company profits.

Regular or "noncumulative" dividends are voluntary. This means the Board of Directors has the option of awarding them. This usually depends on how the company has performed each year.

However, paying cumulative dividends is mandatory. If the company can't pay out a cumulative dividend in any given fiscal year, the amount for that year is carried forward. It must always be paid out before any payments to common shareholders.

Not all "preferred shares" have the right to receive cumulative dividends. Some cumulative preferred shares carry limitations. For example, the company may only have to pay cumulative

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