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Transcript:
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Hello, my name is Tony Lou and I’m the founder of Focus Law. We help business owners break free from dishonest partners and bad deals. If you ever made a board decision without dotting every eye or cross every tea, maybe you forgot to hold a formal vote or missed a technical step in your operating agreement. You might wondering, did we just blow it? The good news is not every procedure missteps voice your decision. [music] In fact, the law allows the room for imperfection as long as your decision was made in good faith and in
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the company’s best interest. [music] In the case of Tuty versus Specialty Surgical Center, the board expelled a partner who had disrupted the business. They didn’t hold a formal board meeting or take a official vote. Instead, all partners informally agreed and moved forward. Later, the expel partners sued [music] in claiming that the board decision was invalid because they did not follow the exact procedures laid out in the operating agreement. However, the court [music] disagreed. Why?
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Because the substance of the decision was sound, the board members were unanimous and the reason for the decision was clearly in the best interest of the company. In other words, the law cares about what you did and why and less about how perfect the paperwork was. Of course, this does not mean that you can ignore all your company’s processes, but [music] it does mean that technical errors don’t automatically invalidate the legitimate leadership and leadership decisions. So, here’s a
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takeaway. Business [music] isn’t perfect, and governance isn’t either. If you and your fellow decision makers acted in good faith with full knowledge and in the company’s best interest, the law will often stand behind you even the process [music] wasn’t flawless. But here’s the catch. You must still be ready to show your intent, the reasoning, [music] and the unity of purpose. At Focus Law, we help business owners protect their leadership decisions, not just defending them, but helping them to [music]
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ensure those decisions are made and documented properly. So, if you are facing internal dispute or worry about a missed uh formality that might unravel a critical decisions, let’s talk. Give me a call 714-415207. A small misstep shouldn’t cost you the business. And with the right legal guidance, you won’t. Give me a call. 714-415207. [music] [music]
This transcript was AI-generated.
