Many of our clients, both here in the US and overseas think that setting up companies on international soil is the best option for them. Many times we would not disagree, as long as they have a solid grasp of the legal, social and jurisdictional rules in all countries they will operate in.
It would be a misunderstanding to believe that logistic and profit-generating advantages offered by international corporate structures alone outweigh the liability exposure for the parent and subsidiary companies.
To illustrate this point, I wanted to share an interesting blog post written by Mauricio de la Barra of the US-California and Mexican law firm, Martin-Sanchez & Leon de la Barra, LLP. The post discussed Delaware's Supreme Court's judgment of $2 billion in damages against them for a breach of fiduciary duty of loyalty to one of their subsidiaries.
Although I am not familiar with all the facts of the case, I wanted to share the story nonetheless as an illustration of how sometimes, it may make sense to take a second look at the advantages of keeping your corporate structure organization at home. The judgment and $304 million attorney billI has to hurt their bottom line here in the US.
It would be a misunderstanding to believe that logistic and profit-generating advantages offered by international corporate structures alone outweigh the liability exposure for the parent and subsidiary companies.
To illustrate this point, I wanted to share an interesting blog post written by Mauricio de la Barra of the US-California and Mexican law firm, Martin-Sanchez & Leon de la Barra, LLP. The post discussed Delaware's Supreme Court's judgment of $2 billion in damages against them for a breach of fiduciary duty of loyalty to one of their subsidiaries.
Although I am not familiar with all the facts of the case, I wanted to share the story nonetheless as an illustration of how sometimes, it may make sense to take a second look at the advantages of keeping your corporate structure organization at home. The judgment and $304 million attorney billI has to hurt their bottom line here in the US.
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