WHAT ABOUT YOU?

We are living in difficult economic times.  Sometimes, companies, especially small and mid-size businesses, go under.  If you are its owner, a high-level employee, or a minority shareholder, and you think the company you have dedicated yourself to is about to fail, what do you do?

The typical answer, “nothing except spruce up your resume,” may well be wrong.  Depending on the circumstances, there are steps to take to ensure that claims you may have will be satisfied.  A lot of moving pieces are involved, such as the company’s solvency, its liquid and illiquid assets, its board’s willingness to declare bankruptcy, not to mention the obvious – the documents governing its functioning (such as bylaws) and its relationship with employees.

You may have a lot more to think about than your resume…