Articles Posted in SEC

Current challenges with intellectual property (IP) licensing infringement are largely driven by the explosive rise of generative Artificial Intelligence (AI). Whether your intellectual property is business software, streaming videos, music, or websites, the globalization of digital content and complex cross-border supply chains will subject it to adaptation and translation. The evolving development of IP licensing…

When you create a corporation to operate your business, remember that it is a separate legal entity under the law. You own it and receive the benefits from its successful operation, but it is accountable and liable for its actions, not you. Your position in the corporation as a director or officer carries fiduciary responsibilities,…

As a business executive of a publicly traded company, you are always looking for ways to inform the public about your company and the reasons they should become one of your customers. Using press releases is a common and effective way to get your information into the hands of people who will get it into…

You’ve heard the quote from Robert Frost’s 1914 poem, “Mending Wall,” that good fences make good neighbors. By the same principle in corporate business, good auditing committees make honest employees. Committees in corporate boards of directors are created to divide responsibilities so the full board can govern more effectively. Multiple committees focusing on different aspects…

Risk Metrics, at first glance, seems to be an oxymoron — two words used together with opposing meanings. Risk means uncertainty of an outcome, and metrics means measurable formulas to accurately predict outcomes. However, in business, Risk Metrics is the science of identifying potential risks to a business, evaluating the likelihood and impact on the…

In a publicly traded company, you are required by state corporation laws and regulations of the Securities and Exchange Commission (SEC) to keep your shareholders informed and to protect their rights by holding an annual shareholders meeting. The details of how that meeting is conducted and the reporting requirements are well defined in each state.…

As a company executive or board member, you have a responsibility to periodically report the financial condition of your company to your investors. To do that in a professional way, to be accurate, and to protect yourself against liability for mistakes or intentional misrepresentations, you have your outside auditors perform an audit and present the…

Has your company ever been denied access to banking or other financial services for any reason other than standard credit risk criteria, violation of terms of service, or excessive unexpected activity? Such practices are now illegal. This practice is called debanking and often occurs without a clear explanation to the customer, leaving individuals or businesses…

A U. S. Government Accountability Office (GAO) study, released in January of 2023 found that “Third-party litigation financing (TPLF) is an arrangement where a funder that is not a party to a lawsuit agrees to provide funding to a litigant (typically a plaintiff) or law firm in exchange for an interest in the potential recovery…

Regulatory agencies, including the Department of Justice and other federal and state authorities, have increased their focus on compliance with artificial intelligence (AI) risk frameworks, particularly within financial institutions. The rapid and widespread adoption of AI has introduced complex risks that traditional control systems were not designed to address. AI is no longer experimental. It…