Paul T. Rushton and Lee S. Piatt of our Business & Finance Department presented a seminar at the PBI Business Law Institute that was held virtually on November 16th. Paul’s and Lee’s presentation, titled “Too Close for Comfort; Equity Offer and Governance Agreement Considerations for Closely-Held Businesses in Transition,” identified several issues that should be considered by the existing owners of a closely held business in deciding upon the terms of an equity offer designed to retain young talent in the business. Lee and Paul also described the provisions that should be included (or at least considered for inclusion) in the governance agreement for the entity and the key protections concerning such provisions that the existing owners should consider adopting before admitting new owners to the business.
Lee and Paul are members of the Title 15/Business Associations Committee of the Section on Business Law of the Pennsylvania Bar Association, the Section’s Council and the Section’s Closely Held Business Committee (which is Chaired by Paul). Paul also serves as the Secretary of the Section.