Valenti Hanley PLLCLouisville Business Law Attorney | Lexington KY Business Litigation Lawyer | Kentucky Contract Dispute Attorney2024-03-19T05:27:03Zhttps://www.vhrlaw.com/feed/atom/WordPress/wp-content/uploads/sites/1500921/2020/07/cropped-vh-site-icon-512px-32x32.pngOn Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490602024-03-14T05:27:18Z2024-03-19T05:27:03Zunsuitable investments.
Understand your situation
Sometimes, advisors may recommend an unsuitable investment with no ill intent. Perhaps they made an error in judgment. Other times, it can happen because they want to increase their profits and have few qualms about making improper investment suggestions. Regardless of the reason for an unwise recommendation, they still have a responsibility to provide sound financial guidance.
Gather your evidence
You need a paper trail or digital documentation to build a convincing case, even if you know you are in the right. Collect all documents and paperwork related to the investment, including account statements, emails, texts, letters and contracts. Creating and maintaining a log or record of interactions with those who recommended the investment can also strengthen your case.
Protect your rights
After learning that your investment compromised you financially, an early protective step is to assess the fiscal harm you may have suffered. A different, well-vetted financial professional can help with this task.
When it is time to consider a legal remedy, it’s important to have experienced guidance. This can help you protect your rights and explore all available options under Kentucky law.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490682024-03-14T05:23:52Z2024-03-19T05:23:29ZLaws protecting investors
Under the Securities Act of 1933, businesses should give investors full disclosure of all material facts that investors may find important to make informed decisions.
Further, under the Securities Exchange Act of 1934, companies publicly offering securities (those that allow the public to directly purchase securities) must be honest with investors about their businesses, the securities they are selling and the risks involved. This act also governs secondary market trading of company securities. People involved in secondary trading (broker-dealers and any other intermediaries) must be honest with investors and put their interests first.
At the state level, investors are protected by the Securities Division of the Kentucky Department of Financial Institutions. The department regulates the state's securities activities of different individuals and industries, including broker-dealers, broker-dealer agents, investment advisers, investment advisers representatives, issuer dealers, securities regulations and securities exemptions.
If you work with any of these parties, they are required to follow laws laid down by the Securities Division to protect you from investment fraud.
What can you do if you experience investment fraud?
Unfortunately, you may still experience fraud despite doing your research to better ensure that you make the right moves. If this happens, you can report the case to the Securities Division. The department will examine the particular entity or individual to determine if they violated any law and caused you harm as a result. Seeking legal guidance is a good way to get started.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490252024-02-19T05:58:11Z2024-02-23T05:57:48ZWhen someone hires an investment firm or a financial advisor, they want that person to put their best interests first. The individual who is investing may believe that they don’t have the proper knowledge to maximize their investments. They do have the capital, but they need a professional to help them make the right decisions. That’s why they’ve hired the investment firm in the first place.
However, these professionals are sometimes paid for every trade that they make. This could be a flat fee, such as getting five dollars for each trade, or it could be based on a percentage. The payments are set up this way because they directly pay the financial advisor for the work that they’re actually doing. If they pay attention to the client’s portfolio and make alterations to ensure that it maximizes their investment, then they earn more money – and so does their client.
The problem with churning
Investment churning, however, is when the firm or advisor begins making trades just to get that commission. Maybe it would have actually been best for the client to leave their money in the stocks they already owned. But the advisor makes 10 different trades just to generate 10 commissions. In the end, the investment portfolio does worse or stays the same. It’s clear that the advisor was only thinking about their own financial gain and not the success of their client.Situations like this can lead to serious legal accusations and complications. With a lot of money on the line, the stakes can be significant. Those who are involved need to be well aware of all of the legal options at their disposal and the steps they can take to protect their rights.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490132024-01-23T15:09:42Z2024-01-25T15:09:26ZOne of the best ways to avoid disputes with a business partner is to create a partnership agreement. Don’t just set up a handshake deal or go into business together with no official structure. Sit down and iron out this legal agreement first. This way, you are both on the same page and you know what to expect.
Exactly what you need to address is going to be unique, depending on your specific situation. But here are three key areas that you may want to consider.
1. Ownership percentages
To start with, if you’re opening a new business, what are the ownership percentages? Don’t assume that it’s just 50% for each person. Clearly identify ownership percentages in this document so that you know who gets to make crucial decisions and what percentage of the company’s value each person actually owns – and deserves if the company is sold in the future.
2. Pay rates
Next, just discuss how you’re going to be paid. Will you have an hourly rate? Will you both just take a salary? Are you going to be paid based on sales – such as dividing all of the company’s income in half? There are many options, but you both need to agree on how payments should be distributed.
3. Dispute resolution tactics
Finally, even a partnership agreement can’t help can’t prevent all disputes. So it may be wise to include provisions for dispute resolution. How do you come to a solution? Should you work with a third-party mediator? What happens if neither of you can agree? Answering some of these questions in advance can make things go more smoothly if this type of situation occurs. This is why it’s so important to know what legal steps to take when starting your business.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490102024-01-05T15:27:31Z2024-01-09T15:26:06Zto prevent conflicts. Here are few things that can help.
Have a written partnership agreement
A partnership agreement doesn't have to be in writing to be effective. An oral contract can be enough to get two people in business. But if you want to prevent future disputes, it's crucial to have a written partnership agreement.
Your agreement should outline the purpose of the partnership, the duties of each partner, ownership interest, decision-making processes, the distribution of profits and losses and more. It should provide adequate information regarding the partnership. Since it’s written, you can always refer to it if there’s any question about what you agreed on, which can be common with oral agreements.
Agree on an exit strategy
Some disputes arise between partners during exit. Therefore, you and your partner should agree on when one can voluntarily or involuntarily leave the business. This information should be included in your partnership agreement.
You should also agree on what will happen if one of you dies. Will the deceased's estate take over their share of the partnership? Can the remaining partner buy the shares from the deceased's heirs? Will the partnership come to an end right away after the death? Doing this can prevent disputes between the remaining partner and the deceased's family.
Remain professional
It's beneficial when business partners develop a personal relationship. However, whether you went into business with your friend or developed a friendship along the way, you should remain professional when handling business issues. Being overfamiliar can cause disputes between business partners.
Whether you need to draw up a partnership agreement or have a serious dispute with your partner, you can benefit by having experienced legal guidance.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490082024-01-05T15:24:52Z2024-01-09T15:23:32ZGoing into business with a family member or friends has its advantages. For starters, you have an existing relationship – forming a business partnership can feel natural. Further, you understand each other's strengths and weaknesses. Accordingly, you will know how to distribute responsibilities.
However, forming a business partnership with a loved one may affect your personal relationship. Thus, you need to be careful.Here are three things to consider to protect your business and relationship.
Conflict resolution
When you and your loved one disagree about everyday matters, chances are you agree to disagree. But this may not work when you start a business together. You need to be on the same page on different matters to run the company successfully. For example, you need to agree on business goals, hiring practices, company policies, exit strategy and so on.But you may not agree all the time. That's why it's crucial to have conflict resolution strategies – how will you handle matters when you can't agree?
Evaluation of performance
You and your future business partner should agree on how to evaluate each other's performances. If you are comfortable providing feedback to each other, you can have regular meetings to do so. If not, a neutral third party can help you with assessments.
Personal vs. business life
Going to work every day with a loved one is fun. But you also have a business to run. So, how will you keep your personal and professional life separate? You and your business partner-to-be should decide what to discuss in the office and what to avoid. You should also agree on when to stop discussing the business and focus on personal issues.A business partnership with a loved one or friend can be beneficial if approached from the right angle. Seek legal help to understand the steps to take. ]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490072024-01-05T15:21:51Z2024-01-09T15:19:34ZIn business, reputation is everything. A string of good reviews can see customers coming through your door for years. A single bad review can put a significant dent in progress.
That being said, people are entitled to express their opinions freely. However, there is an exception. People cannot damage the reputation of your business with malicious falsehoods. This is generally referred to as defamation. What does business defamation look like?
Statements must usually be in writing
As with all legal cases, evidence is key. This is why defamatory statements should be in writing. This way, there is a written record of the defamatory statement. Importantly, the statement or statements must be published. In other words, someone other than the author must have seen them.
Statements must be false
A bad review or negative statement is not actionable in itself. Even if you don’t agree with the statement, people are entitled to their opinions. However, if a damaging statement is blatantly false, it could be actionable in law. For example, if someone has published a written review on your restaurant, falsely claiming that you positioned customers, this is defamation.
Damages must be quantifiable
To have a valid defamation case, your company must have suffered some financial harm. For instance, if your clients started canceling contracts on mass after reading a defamatory statement. This would show a quantifiable loss to your company. Defamation is a serious issue and it’s not something that you have to put up with. False and damaging statements can be difficult to shake off. Seek legal guidance to assess your options in terms of remedying the situation. ]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=490052023-11-27T17:32:28Z2023-11-29T17:31:51ZPatients cannot grow their own cannabis
The medical marijuana law in Kentucky does not allow individual patients to cultivate their own cannabis. Home cultivation is still not an option even if someone has a recommendation to use medical marijuana or a history of growing it illegally for personal use. Professionals will need to cooperate with the state to secure licenses to cultivate. The state has yet to release specific rules and requirements for licensing, as the program will not become operational until 2025. There may be business opportunities for individuals skilled in horticulture and those with investment funds who can establish industrial grow operations.
Hemp farmers can also grow cannabis
After years of prohibition, Kentucky now allows farmers to grow industrial hemp with low levels of the psychoactive chemical THC as a crop. Hemp has a variety of different uses, from fiber for textiles to insulation and bioplastics. Hemp seeds are also a popular health food. Farmers hoping to cultivate hemp crops will require licensing from the state to do so legally.
Complying with the evolving restrictions related to cannabis cultivation can benefit those hoping to put their horticultural skills or agricultural land to profitable use. Anyone who has questions or concerns related to this opportunity can seek legal guidance at any time.]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=489962023-11-09T15:18:25Z2023-11-13T15:17:52ZStarting a business with a partner is kind of like starting a band. You've got the shared dreams and the blend of talents. But you also have the occasional creative differences about which direction to take next. And just like in a band, when those differences turn into disputes, you've got to handle them appropriately.
Now, think about the times you've been in a disagreement. Yelling across the room never gets anyone anywhere. When you sit down with the involved parties, you start making headway. It's the same in business. Consider these tips to help you resolve partnership disputes effectively.
Give each other space
When you and your partner are at odds, find a neutral spot to hash things out. Maybe grab a coffee or take a walk. Changing the scenery can change the vibe and help you both come to the conversation a bit more relaxed. Plus, it keeps the tension away from your team, which is crucial for maintaining a stable and productive workplace.
Play to each partner's strengths
Every partner brings something unique to the table. When you're stuck on a decision, look to a partner who knows their stuff in that area. Respecting each other's expertise not only smooths over disputes but also sets a solid example of teamwork for everyone else.Sometimes, though, you might find you and your partner just can’t see eye to eye, no matter how hard you try. When you’re at that crossroads, it might be time to bring in an unbiased third party. Disputes aren't fun, but they don't have to be the end of the world—or your business. With some clever tactics and a cool head, you can get past them and back to what you do best: making your business successful.
]]>On Behalf of Valenti Hanley PLLChttps://www.vhrlaw.com/?p=489932023-10-25T18:02:50Z2023-10-27T17:59:34ZThose investing in businesses would often prefer to do so discreetly. People don't want to have their names tied to specific companies or have the extent of their personal resources made public knowledge.
Many investors, including those who provide substantial backing for startups and successful companies, would rather not have their names associated with the organizations that they fund. However, the ability of investors to remain relatively anonymous is about to change thanks to the upcoming implementation of the Corporate Transparency Act (CTA).
What does the CTA mean for investors?
Businesses have to disclose anyone with a beneficial ownership interest. Historically, people could invest as much as they wanted in businesses without necessarily making that information known to the public or even the government. However, it will become significantly more difficult to obfuscate one's financial investments after the CTA goes into effect. As of January 1st, 2024, all new businesses will have an obligation to submit a report to the Financial Crimes Enforcement Network (FinCEN) containing the name and other crucial identifying information of anyone with a 25% stake in the business or more. Existing businesses will need to put together reports by January 2025. Additionally, businesses will also have to disclose the names of those who filed paperwork to create the business or those who guided others in the process of filing business formation documents. The goal of the CTA is to help prevent money laundering and to connect investors to business enterprises. Those who hope to retain their personal privacy may therefore need to carefully gauge how much they invest in any one organization to avoid reaching the threshold that would trigger mandatory reporting to FinCEN. Learning about upcoming changes to federal financial laws can have a major impact on those who want to invest but also hope to preserve their privacy.]]>