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Davis Flint along with Bateson Crampton and Arunah Hubbell is forming business to explore for oil and gas. The three want to raise additional capital by selling securities the business to local investors. The three intend to retain control of the business and not to allow the local investors to interfere in the business's operations. Davis Flint has read in the newspapers recently about the liability of business managers to the owners for mismanagement of the business.
Davis Flint has entered your law office at Blue Stocking Law Firm, P.C. , to create the paper work formally establishing the business. Davis Flint wants the business form to eliminate his liability for mismanagement.
1. What are your conclusions about the feasibility of eliminating that liability, and recommendations on what needs to be done? Explain.
2. Would your answer be any different if the business was a law practice? Pease research Massachusetts law on this issue and outline the rules surrounding law firm ownership.
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