Following the untimely death last year of his father Big Daddy Bux due to COVID-19, brother Hustler Bux was appointed independent executor of Big Daddy’s Will. When Hustler asked for a judicial discharge, sister Kathy “Kitten” – who had cared for both parents and still lived in the family home – objected complaining that Hustler failed to disclose important facts related to the estate. Kitten’s mistrust was intensified by altercations between them at the family home, and then confirmed by Hustler’s late inventory and accounting revealing his uneven distribution of Big Daddy’s $5 million estate. Without telling Kitten, Hustler (i) deeded the family home to Kitten and deducted his determination of its value from her share, (ii) deeded a ranch in Goliad to himself and their two brothers – but not her, (iii) reserved $150,000 of estate funds to cover his attorneys’ fees to defend any lawsuit. Kitten asked for explanations. Hustler refused. Even worse, Hustler intimated that, by just asking for the estate information, Kitten violated the will’s “no-contest” clause. Can Hustler refuse to tell Kitten about Big Daddy’s estate and his assets? What’s a “no-contest clause?” What is a judicial discharge?
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Fiduciary Duties
Closing up Shop: Your Company and You
Seeing the bottom line awash with red ink yet again, Susie Sears reluctantly decided to shut down her family-owned Widgets-R-Us. Pressured by thinning margins, a weakening labor pool and increasing competition from foreign markets, Widgets-R-Us is leveraged to the hilt and profits are insufficient to pay even her secured debt. With no viable assets or business, there’s nothing to mortgage or to sell. How can Susie and her fellow company officers walk away without becoming personally liable?
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Am I My Director’s Keeper?
Board of directors member Y.I. Gnough, who is also president of Algae Company, is in a pickle. Although denying any knowledge of sexual harassment and misconduct by the company founder and deal-maker Iam Algae, three co-board members resigned fearing for their reputational and financial survival. Employees are fueling the rumors of women who complained of unwanted touching, sexual harassment and other over-the-line behavior. Even Algae’s former counsel discloses that several years ago the board and the company were told of three or four confidential settlements with women. Company investors suggest that Y.I. and fellow officers and directors breached their fiduciary duty. Should Y.I. be concerned about his pocketbook and his reputation?
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