Although the principle that a corporation’s lawyer represents the company rather than the individuals who own or run the company is well-established, lawyers for small, closely held companies sometimes face challenges in determining whether they also have any fiduciary obligations to shareholders.
Ennico
Clifford Ennico, a former Wall Street lawyer who now represents small companies, notes that it’s understandable why attorneys sometimes confuse the company with its executives. “Two guys always approach you and say they want to form a corporation. As a practical matter, you’re going to be getting calls from both these guys. Both may view you as their ...