Search CompleteMarkets

...en involved in building municipal stadiums and arenas. After the sale by the c...reserves. In each of these events, individual directors and/or offi...

... The historical liability exposures, attitudes, and protections available will not be equivalent or applicable to new situations. The following situations should illustrate the potential complexity of this area. Situation 1 A conglomerate purchases and subsequently sells a construction company which has been involved in building municipal stadiums and arenas. After the sale by the conglomerate, a defect is discovered at a prior location-the construction of which occurred before the purchase of the company by the conglomerate. The replacement costs resulting from necessary repairs as a result of the defect will run upwards of ... ) contracts which place the acquiring company in a weakened or exposed position; c) products manufactured or services performed which, subsequent to the acquisition, result in loss; and d) self-insured workers compensation without known (non-actuarially estimated) reserves. In each of these events, individual directors and/or officers of the prior or acquiring company may be brought into a legal action. Contractual And Joint Venture Undertakings All corporations need to recognize that hold harmless agreements or joint venture agreements may involve potential loss (not normally assumed to exit ... in a precise manner. If a joint venture is involved, further complications exist. Identification of joint and several liabilities, prior and ongoing hold harmless arrangements or even the dissolution provisions are important. A conglomerate may establish new corporations which share responsibility with ongoing or phased-out operations. The most important aspect of this complex change in structure is its effect on the liability and responsibility of individual entities over time. Financial transactions and business are not point' occurrences but occur over a period of time and place, often with a change or ...