Is the MSO-friendly PC Model at Risk?

Many medical practices in California actually include two separate but contractually related entities: A management services organization (MSO), often owned by non-physicians or non-physicians and physicians, and a professional corporation (PC), owned by physicians and responsible for the clinical components of the business.  This structure has developed in part due to California’s restrictions on “lay” persons Read More

What Is Directors & Officers (D&O) Insurance?

In our previous post on D&O insurance, we provided an overview of D&O insurance and a brief discussion of the benefits of this type of policy for smaller start-up entities. As we saw, D&O insurance provides a critical type of coverage that can be very valuable for emerging start-up companies. This type of policy provides a much-needed layer of security as companies begin the process of growing and Read More

Do I Need D&O Insurance?

What is D&O Insurance Directors and officers insurance (D&O insurance) can be an extremely valuable type of policy for businesses. As we’ve discussed on our blog, in some cases, directors and officers (and also corporate agents) may be entitled to indemnification when they pursue certain actions in the interests of their company. D&O insurance can potentially offset the costs associated with the Read More

Corporate Officer and Director Indemnification Under California Law Beyond the Basics

In the previous post, we discussed some of the basics of California Corporations Code Section 317. As we saw, Section 317 is essentially concerned with indemnification of corporate directors and officers for actions that arise when directors and officers act in the best interests of the company. In some cases, corporations may indemnify directors and officers; and in other cases, corporations must indemnify directors Read More

Corporate Officer and Director Indemnification Basics Under California Law

In the corporate world, one recurring issue is the payment of expenses, judgments, fines, and other costs resulting from corporate agents acting in the best interests of a corporation. Under the California Corporations Code, corporations may indemnify – and, in some cases, must indemnify – agents if they become parties to an action which arises from their conduct as agents of the corporation. This is true for both Read More