Entries by Derek Usman

PHANTOM GAIN – IT’S MAGIC

Derek P. Usman, The Usman Law Firm, P.A.   “MINIMUM” GAIN ARISING FROM PARTNERSHIP NONRECOURSE DEBT Section 702(a) provides a list of items arising from partnership operations that are to be separately distributed to each partner. Subsequently, the partner takes into account his distributive share of the partnership items in determining his income tax.   […]

MINORITY SHAREHOLDERS RECEIVE A CHRISTMAS GIFT FROM THE GOVERNOR

Derek P. Usman, The Usman Law Firm, P.A.   Effective January 1, 2007, amendments to the Illinois Business Corporation Act now provide a more precise definition of the fair value of minority interests. The new Illinois legislation is quite similar to the 1999 amendments to the Model Business Corporation Act. The Illinois Business Corporation Act […]

A Matter of Trust: Closely-held derivative lawsuits

Derek P. Usman, The Usman Law Firm, P.A.   A shareholder may initiate a direct action lawsuit against a corporation to redress an injury inflicted by the corporation upon the shareholder. However, a shareholder may also assert a cause of action on behalf of the corporation. Such a suit, a derivative lawsuit, arises against officers […]

COMING THIS SUMMER: THE NEW ILLINOIS POWER OF ATTORNEY ACT

Effective July 1, 2011, changes in the Act create new statutory Power of Attorney (POA) forms for property and healthcare.  A Power of Attorney is a legal document that gives another person (your agent) the authority to make financial and other legal decisions on your behalf. The revised act provides more guidance to the agent […]

THE CONTRACT – HAVE IT IN WRITING

A written document to memorialize terms of an agreement between two or more persons minimizes confusion and possibility of litigation. Even though an oral agreement is usually sufficient to form a legal binding contract, a written contract provides proof of the intentions of the parties. To demonstrate a breach of contract, the aggrieved party must […]

AMENDING PLEADINGS IN ILLINOIS COURTS

Section 2-616 of the Illinois Civil Practice Law provides for amendments to pleadings on just and reasonable terms before final judgment. Loyola Academy v. S & S Roof Maintenance, 146 Ill.2d 263 provides the standard for amending pleadings in Illinois. The Loyola Academy court looked to four factors in determining the appropriateness of allowing leave […]