Every business, regardless of industry or size, is facing unique challenges given the pandemic. Our attorneys are tracking guidance, policies, and recommendations issued by government agencies and authorities.
The Division of Corporation Finance (Division) of the U.S. Securities and Exchange Commission (SEC) issued guidance applicable to federal proxy rules, last updated on April 7, 2020, for upcoming annual shareholder meetings and special meetings in light of the difficulties and issues raised by the COVID-19 pandemic.
For better or worse, the COVID-19 pandemic has increased our awareness of the danger of contracting illness through viruses and, as a direct result, the standard of care businesses must provide to protect employees and customers has changed.
Since the novel coronavirus migrated from China to U.S. soil, we have been barraged by 24/7 reporting and social media commentary regarding how many people have fallen ill, how many people have been hospitalized, and how many people have died.
As most are now aware, a business can obtain a loan pursuant to the PPP of the CARES Act and have some or all of the loan proceeds forgiven if the business uses such loan for its intended purposes (75% payroll and 25% rent, primarily). There has been speculation that the CARES Act’s exclusion of forgiveness loan proceeds from income means that a business could “double dip” — namely, that the business could both exclude the forgiven proceeds from income and deduct the payroll and rent from income as business expenses. The IRS has issued a notice that this is NOT the case.
This afternoon, Governor Abbott signed an Executive Order “relating to the expanded reopening of services” as part of the Open Texas strategic plan.
The COVID-19 virus is posing new challenges for employers, including the need to balance employers’ obligations and employees’ rights during this unprecedented pandemic. Through its Q/A-formatted webinar on March 27, 2020, the Equal Employment Opportunity Commission...
For small businesses needing to file bankruptcy to save their company, Subchapter V of Chapter 11 of the Bankruptcy Code (the “SBRA”) within the Small Business Reorganization Act is a great option. The new subsection, which took effect in February 2020, creates a more...
For the first time since the United States enacted the Bankruptcy Code, small businesses may utilize the benefits of Chapter 11, including eliminating debt and rejecting unprofitable contracts, without worrying about losing their business. Normally, businesses of any...
With such immediate and far-reaching effects and the World Health Organization’s declaration of a global pandemic, it seems like this is truly an unexpected “superior force,” or as the French say, a “force majeure.” However, whether the COVID-19 virus outbreak excuses contractual performance is not a simple issue and, perhaps unsatisfyingly, the answer is a lawyerly one—“it depends.”[i] While there is no simple and universal answer, we can provide some helpful guidance on the topic.
While the central concern in the business community seems to be whether or not the coronavirus outbreak fits into force majeure clauses there is an alternative option worth exploring: frustration of purpose.