Code Section 409A is, in part, a response to perceived deferred compensation abuses at companies like Enron and WorldCom. The story of Code Section 409A’s six month delay provision is inextricably tied to the Enron and WorldCom bankruptcies.
USA, Company & Commercial, Employee Benefits & Pensions, Insolvency & Restructuring, Tax, Bryan Cave Leighton Paisner (Bryan Cave), Public company, Bankruptcy, Deferred compensation, Internal Revenue Service (USA), Enron, Bitly
In today’s turbulent economic climate, it is vital for creditors and debtors to understand the precise boundaries of their rights and duties when an enterprise becomes insolvent. Directors, officers and managers must acknowledge those to whom they owe fiduciary duties and fulfill those duties at the risk of personal liability, while creditors evaluate their potential remedies against misbehaving insiders to collect on defaulted obligations.
USA, Delaware, Company & Commercial, Insolvency & Restructuring, Litigation, Bryan Cave Leighton Paisner (Bryan Cave), Debtor, Breach of contract, Fraud, Fiduciary, Board of directors, Limited liability company, Standing (law), Limited partnership, Liability (financial accounting), Default (finance), Derivative suit, Delaware General Corporation Law, Delaware Court of Chancery, Delaware Supreme Court