Legal Updates

Building the Entrepreneurs of Tomorrow: A Candid Discussion with the CEO of Venture for America, Andrew Yang

Let’s say a senior at MIT is about to graduate with a double major in Computer Science and Comparative Media Studies. Career Services tells the student, “You can make six figures at a Manhattan consulting firm, or you can apply to ‘Venture for America.’ Oh, and if selected by Venture for America, you will be sent to a city in need of entrepreneurs. There you will make less than $40,000 a year working for a start-up.” Which would you choose as your first job?  Fortunately, in 2013, hundreds of America’s best and brightest college students chose the latter and applied for the seventy fellowships offered by Venture for America.

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New Prospectus Exemption for Canadian Listed Issuers

On March 13, 2014, the securities regulatory authorities in British Columbia, Alberta, Saskatchewan, Manitoba, Québec, New Brunswick, Nova Scotia, Yukon, Northwest Territories, Nunavut and Prince Edward Island adopted a prospectus exemption that will allow issuers listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSX-V) and the Canadian Securities Exchange (CSE) to raise money by distributing securities to their existing security holders, subject to certain conditions.

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How Hoteliers Must Comply With WARN

By Kara M. Maciel

When hoteliers are considering purchasing, selling or remodeling hotels, one of the most overlooked issues during the due diligence and planning phases relates to the Worker Adjustment and Retraining Notification Act.

This statute requires covered employers to provide 60 days’ notice to employees, union representatives, state agencies and localities before carrying out plant closings or mass layoffs.[1] Congress intentionally devised WARN to provide affected employees adequate time to prepare for employment loss, seek and obtain alternative employment, and/or arrange for skill training or retraining to compete successfully in the job market.

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Trusts and the EU’s Fourth Money Laundering Directive

It is rare for trusts to cause a rumpus.  However, the European Commission’s latest draft EU Money Laundering Directive has put trusts in the spotlight and resulted in some alarming press reports.  So what’s going on and who will be affected by the changes proposed by the Directive?
Article 30 of the draft Directive requires trustees of trusts (or other types of legal entity and arrangements with a similar structure and function to trusts) established in or governed by a law of an EU Member State to disclose to ‘obliged entities’ that they are acting in their capacity as trustees.  ‘Obliged entities’ is a widely drawn definition which includes financial institutions, accountants, tax advisers, lawyers, trust providers and estate/letting agents with whom the trustees form a business relationship.  These trustees are also obliged to obtain and hold information concerning the identity of the settlor, the trustees, the protector (if any), the beneficiaries and any other natural person exercising effective control over the trust. 
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Multistate Tax Update — March 13, 2014

Florida: Taxpayer permitted to discontinue filing of consolidated tax returns

In a move that is largely unprecedented in the state, the Florida Department of Revenue (the Department) permitted a taxpayer which had been filing as part of a consolidated group to discontinue filing consolidated returns. If your business is already a consolidated filer in Florida or is about to become one, Technical Assistance Advisement 13C1-008 (the Advisement) is perhaps the best non-binding precedent for ceasing to file as a consolidated group.

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California District Court Confirms That Employees Need Not Be Paid For De Minimis Time

by Michael Kun

We have written frequently in this blog about the great many wage-hour class actions filed against employers doing business in California.   Those lawsuits often allege that a class of employees performed work off-the-clock, and that the employees are not only entitled to compensation for that time, but to a slew of penalties that often dwarf the amount of alleged damages. 

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The ambiguity in defining Internet commercials

The Screen Artists Guild-American Federation of Television and Radio Artists (SAG-AFTRA) Commercials Contract governs wages and benefits for talent appearing in commercial advertising productions. SAG-AFTRA signatories include major marketers, such as P&G, Coca-Cola, and Unilever, as well as most ad agencies. A significant issue for marketers bound by the Commercials Contract is whether branded online video content is properly classified as a “commercial” intended for use on the Internet. More…

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Credit Union Regulatory Alert

Thank you for taking the time to read this Howard & Howard Credit Union Regulatory Alert. We aim to provide our credit union clients and friends with information to help you understand and interpret the ever-changing regulatory environment.

If you find these Alerts helpful, please forward to your friends and colleagues. New readers can sign-up for our free e-Alerts here.  More…

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The sky is the limit? – Hungarian rules for private equity investments become more flexible

Hungary’s new Civil Code will enter into force in March 2014. The new legislation will also amend the rules of company law. As opposed to the previous legislation, the new company law regulation will share the general
permissive nature of civil law. As a result, with a few exceptions, members of a company will now have the possibility to derogate from the statutory rules and regulate their legal relationship at their own discretion. In addition to this conceptual innovation, the new Civil Code will also
introduce a wide range of new options available to the shareholders. More…

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The legislator and the court agree – is the tax authority left on its own?

The tax authority lost a case related to the VAT treatment of year-end transfer pricing adjustments. The court stated that year-end transfer pricing adjustments share the characteristics of the original transaction; therefore, their VAT treatment is the same as the VAT treatment of the
original transaction. The conclusions of the verdict go beyond the specific case: the judgment shows that, as opposed to the tax authority’s standpoint, the courts follow the logic of the legislator. More…

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