Small business need-to-know and news-to-watch.
Excerpt……….Companies whose initial public offerings (IPOs) take the form of limited partnerships (LPs), rather than corporations, may pose special risks to investors. LP owners do not have the same legal rights as corporate shareholders, and standards of director independence and fiduciary duty do not protect investors’ interests to the same degree. The governance disadvantages of LPs may not be reflected in IPO prices, but could lead to price declines if they are subsequently recognized by the market.
Read full article……via Public Investors and the Risks of Non-Corporate Governance — The Harvard Law School Forum on Corporate Governance and Financial Regulation.
