Lawrence Law Office News

SHAREHOLDER BILL OF RIGHTS ACT 2009

admin — Wed, 11 Nov 2009 16:47:16 +0000

The Shareholder Bill of Rights Act, sponsored by Charles Schumer (D, NY) was read to congress on May 19^th, 2009. The Shareholder Bill of Rights Act is aimed to place more shareholder input into executive compensation as well as promote corporate governance reform. Under this new act companies would be required to provide shareholders with some basic rights, including:

1. Annual shareholder votes on executive compensation

2. Shareholder votes to approve golden parachutes

3. A split of the Chairman and Chief Executive roles

4. Annual director election, with implementation of majority voting for these elections

5. Establish risk committees comprised of independent directors

Currently, the bill has been referred to the Committee on Banking, Housing and Urban Affairs. A copy of the Shareholder Bill of Rights Act in its entirety can be found by searching for S. 1074 at www.congress.org

PROTECTING YOUR TRADENAME ON FACEBOOK

admin — Sun, 09 Aug 2009 19:32:19 +0000

As of the end of June, both individuals and businesses alike are now able to create personalized usernames for their Facebook pages, e.g. facebook.com/LawrenceLawOffice. Previously on Facebook , the web address for a company’s page consisted of Facebook.com followed by a long profile identification number. This now allows for your business to be a more easily recognizable and accessed presence on Facebook. If you are interested in promoting your business in this manner, you can register your business name or trademark any time on Facebook.com. Moreover, if you are concerned about other individuals infringing on your trademarked name for their own personal username, you can file a “Preventing the Registration of a Username” form on Facebook.com.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

PRESIDENT OBAMA ASKS CONGRESS TO CREATE A CONSUMER FINANCIAL PROTECTION AGENCY

admin — Wed, 05 Aug 2009 00:04:50 +0000

President Obama recently suggested to congress the formation of a Consumer Financial Protection Agency (CFPA). The details of the formation and duties of this Consumer Financial Protection Agency are outlined in a 152-page draft bill that will be considered by the House Financial Services Committee and Senate Banking Committee later this month. According to the draft bill, The Consumer Financial Protection Agency would be in charge of overseeing mortgages, credit cards and payday loans. The agency would potentially require lenders to put a type of “Warning Label” on those mortgages which have payments that balloon in size after a few years. The proposal is receiving opposition from the banking industry as well as Senate Republicans who contend that this would ultimately limit options for consumers and lull them into a false sense of security.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

RECENT CHANGES TO OHIO LAW FOR MEDICAL OBLIGATIONS IN CHILD SUPPORT AGREEMENTS

admin — Fri, 31 Jul 2009 14:00:57 +0000

Last year, the federal government made changes to requirements for medical support obligations in Child Support under title IV-D of the Social Security Act. The State of Ohio then passed legislation in accordance with federal law that resulted in changes to the Ohio Revised Code. Previously, the Ohio Revised Code required that all child support orders require the obligor and/or obligee (a.k.a. the person paying child support and the person receiving child support) to provide available private health insurance. The new revised code adds that the obligor pay cash medical support during any period in which the child is not covered by private insurance. Given these changes, child support orders will now contain two child support obligation amounts. 1.) an amount when health insurance is provided and 2.) an amount when health insurance is not provided plus the cash medical support amount. The cash medical support obligation will be $0.00 if the obligors annual income is less than 150% of the federal poverty level.

These changes to the law can make a big impact if you have a child with significant medical expenses and do not have private insurance available. If you have any questions regarding the new medical support guidelines or believe your child support arrangement should be restructured to encompass these changes, contact a lawyer immediately.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

SPOUSAL SUPPORT PAYMENTS CAN BE TAX DEDUCTIBLE

admin — Mon, 27 Jul 2009 00:36:57 +0000

Spousal support payments or alimony paid to a former spouse can be taxable under the Internal Revenue Code for the person receiving support and deductible to the person paying the support provided the Divorce Decree or Separation Agreement has been properly structured and the following basic requirements have been met

1. The support in question cannot be paid as child support and must be paid by cash, check or money
order.

2. The parties cannot be members of the same household.

3. If the payor or payee is remarried, they cannot file a joint tax return with the new spouse.

4. The court order cannot specifically state otherwise.

Generally, if these requirements are met in the Divorce or Separation agreement, then the payments are in fact deductible for the person paying the support, conversely, the support payments must be considered taxable by the person receiving the support. If you have any questions regarding tax issues associated with spousal support payments, consult your lawyer.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

MORE BILLS PASSED TO PROTECT CONSUMERS AGAINST PREDATORY LENDING

admin — Tue, 21 Jul 2009 15:49:30 +0000

Predatory lending is widely seen as one of the triggers for the current housing market slump and subsequent economic recession. In response to this predatory lending, Congress passed the Mortgage Reform and Anti-Predatory Lending Act in May of 2009 as an initial step towards restructuring the guidelines by which mortgage companies must abide. Congress recently passed two additional bills which are also designed to help prevent foreclosure and protect against Mortgage Fraud. The Helping Families Save Their Homes Act and The Fraud Enforcement and Recovery Act were signed into law at the end of May. Among many other provisions, The Helping Families Save Their Home Act requires an increase in the number of housing field employees that will be available to assist homeowners who may be in danger of losing their homes to foreclosure. The Fraud Enforcements and Recovery Act will expand the regulations on the mortgage lending business. Passage of both of these acts is particularly significant for Ohioans, as Ohio currently ranks 10^th in the country in the number of foreclosures.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

BANKRUPTCY RELIEF

admin — Sat, 17 Jan 2009 13:02:37 +0000

With today’s volatile economy, the issue of bankruptcy relief is a hot topic. Many individuals and businesses are considering whether bankruptcy relief is an option for them and what does it specifically mean for them. First, bankruptcy relief requires filing documentation with the United States Federal Court seeking relief from payment of debt and a stay on collection actions by creditors. Whether you will have to repay any of your debts will depend upon your current income and the nature of your debts. These factors also determine which chapter of bankruptcy you would need to file. Initially by filing for bankruptcy relief, your creditors are stayed from collection activities. Accordingly, the initial filing of the bankruptcy may stop garnishments, foreclosures, repossessions, evictions, harassing telephone calls and other actions by creditors. Additionally, bankruptcy relief may allow you to discharge certain obligations, meaning that you would not have to pay those debts after you filed for bankruptcy. What obligations are discharged will depend on the following factors:

Is there property securing those obligations, such as a house or car?
Are you current on your payments?
Are the obligations tax debts?

Both individuals and businesses can file bankruptcy. The following financial information will need to be provided:

Current and past income
Assets and their values
Name, type and amount of each debt

Due to the fact that there are some pre-filing requirements such as debt counseling and the completing paperwork, if you are considering bankruptcy, you should seek consultation immediately to know how to proceed and to understand your rights.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919
www.LawrenceLawOffice.com

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

WORRIED ABOUT PERSONAL LIABILITY FOR YOUR BUSINESS DEBT?

admin — Wed, 14 Jan 2009 00:18:34 +0000

If your business is incorporated and you have not personally guaranteed your business debt, business creditors can only pursue you personally, if they can “pierce the corporate veil.” The long standing test in Ohio to “pierce the corporate veil” was: (1) domination and control over the corporation by those to be held liable is so complete that the corporation has no separate mind, will, or existence of its own; (2) that domination and control was used to commit fraud or wrong or other dishonest or unjust act, and (3) injury or unjust loss resulted to the plaintiff from such control and wrong.* Recently, the Supreme Court in Dombroski v. WellPoint, Inc., Slip Opinion No. 2008-Ohio-4827 modified this three pronged test. The Court found that for piercing the corporate veil, the creditor must demonstrate that the shareholder exercised control over the corporation in such a manner as to commit fraud, an illegal act, or a similarly unlawful act. “Courts should apply this limited expansion cautiously toward the goal of piercing the corporate veil only in instances of extreme shareholder misconduct.” Accordingly, piercing the corporate veil can no longer occur when the action by the individual shareholder is simply unjust or inequitable. If your business is not incorporated, you should consult with your legal counsel to consider the advantages of doing so.

Belvedere Condominium Unit Owners’ Assn. v. R.E. Roark Cos. Inc , 67 Ohio St 3d 274, 617 NE2d 1075, as expanded by appellate courts. (The Belvedere test had permitted actions against individual shareholders when their control of the corporation was exercised in such a way as to commit “fraud or an illegal act” against the plaintiff. Subsequent appellate decisions had broadened the definition of that phrase to include “other unjust or inequitable acts.”)

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.

President Signs FMLA Military Expansion Into Law

admin — Wed, 14 Jan 2009 00:14:17 +0000

An expansion of the Family and Medical Leave Act (FMLA) now will extend coverage to employees who have family members called for military service.

President Bush signed the legislation into law early last week. The measure now will require employers to provide up to 12 weeks of unpaid, job-protected leave to employees when a spouse, parent, or child is called into active duty or is currently considered active in the service. Employees who qualify can take leave for any “exigency,” a term which the U.S. Labor Department will further define in regulations in coming months.

The new law also allows qualified employees to take up to 26 weeks of leave to care for family members who are unable to care for themselves or perform normal activities as a result of a military-related injury.

Only employers covered by the FMLA (50 employees within 75 miles) and “eligible employees” (1 year of services and at least 1,250 hours) qualify for this new leave entitlement. Like other types of FMLA leave, health insurance benefits must be continued during the period of leave. Employees are also entitled to reinstatement to the same or an equivalent position. Under both of these new leave policies, employees will be permitted to use the leave incrementally or in the smallest increment that the employer’s payroll system tracks.

This is the first expansion of the law since 1993, when the original law was enacted. Aside from the new measures, the existing law allows employees to take up to 12 weeks of unpaid, job-protected leave following the birth or adoption of a child. The FMLA also allows employees to go on leave if they are suffering from a serious illness or if they need to take care of a sick child, parent, or spouse.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved

OHIO MAY BE THE FIRST STATE TO REQUIRE EMPLOYERS TO PROVIDE PAID SICK LEAVE

admin — Wed, 14 Jan 2009 00:11:20 +0000

The proposed Healthy Families Act is expected to be on the ballot in November. The proposal would require Ohio employers with 25 or more employees to provide a minimum of seven paid sick days for all full-time employees and paid time off for part-time employees. Under the proposal’s language, full-time is defined as 30 hours per week. It also prohibits the reduction of existing benefits in order to comply with the new mandate, placing substantial financial and administrative burdens on employers. Ohio would be the first state in the country to adopt mandatory paid sick leave. Currently the only jurisdiction with mandatory sick leave is the city of San Francisco.

The Ohio Chamber of Commerce and many other regional chambers of commerce and business oriented organizations oppose the Healthy Families Act. The Act will impose an additional compliance burden on employers and may force employers to downsize employees, reduce employees’ hours or pass the cost onto the consumer.

This article was written by
Linda J. Lawrence
LAWRENCE LAW OFFICE
24 W. William St.
Delaware, OH 43015
740-362-1919

This publication is not intended to provide legal advice on specific subjects. The resolution of legal issues depends upon the specific facts of a particular situation and the laws involved.