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People news: M&T Bank appoints Todaro to company management committee
BUFFALO, N.Y. — Michael J. Todaro has been appointed to the management committee of M&T Bank, where he is executive VP overseeing its mortgage and
City of Syracuse closes on financing for renovations at Clinton Plaza Apartments
SYRACUSE, N.Y. — The City of Syracuse has closed on financing with the Mulholland Group, LLC of New York City for a $40 million renovation
Baseball great Pete Rose makes Syracuse visit
SYRACUSE — Wherever Pete Rose goes, his lifetime ban from Major League Baseball (MLB) for gambling is fodder for discussion. And, that was true on Rose’s recent stop in Syracuse. In December, MLB denied Rose reinstatement to the game. However, Commissioner Robert Manfred, Jr.’s statement on his decision seemed to imply that eligibility for the
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SYRACUSE — Wherever Pete Rose goes, his lifetime ban from Major League Baseball (MLB) for gambling is fodder for discussion. And, that was true on Rose’s recent stop in Syracuse.
In December, MLB denied Rose reinstatement to the game. However, Commissioner Robert Manfred, Jr.’s statement on his decision seemed to imply that eligibility for the National Baseball Hall of Fame in Cooperstown was a separate issue.
“In fact, in my view, the considerations that should drive a decision on whether an individual should be allowed to work in baseball are not the same as those that should drive a decision on Hall of Fame eligibility,” according to Manfred’s statement posted at mlb.com.
In response to a reporter’s question about the Manfred statement, while in town on Jan. 22, Rose said he was “confused about that,” not sure what Manfred meant. And, “that’s why I don’t like to comment on it,” he said.
“The Hall of Fame is a different entity than baseball. All baseball does for the Hall of Fame is supply the players,” Rose said in speaking to local reporters at the Oncenter in downtown Syracuse. Rose served as the keynote speaker at the Syracuse Chiefs’ 2016 Hot Stove Dinner & Charity Fundraiser. More than 900 people attended the event, the Chiefs said in a Facebook posting.
Rose is MLB’s all-time leader in hits (4,256) and games played, according to the Syracuse Chiefs news release on the event. He had 17 all-star appearances and earned an MVP award in his 24-year major-league career.
He also participated in six World Series, Rose noted during his remarks.
Rose was asked if he remains hopeful that the Baseball Writers’ Association of America can one day consider him for the Hall of Fame.
“Well, this is America we live in. Everyone usually gets a second chance. But if you want to know do I pray every night before I go to bed that I’m going to go to the Hall of Fame … No. I pray [that] I’m going to get up the next morning,” said Rose, who turns 75 in April.
But there is a Hall of Fame that Rose is about to enter.
Rose says his upcoming induction into the Cincinnati Reds Hall of Fame means a lot to him because of his roots.
“I’m from Cincinnati,” he said. “I was born four miles from the ballpark.”
The Reds will induct Rose into their Hall of Fame during the weekend of June 24. The team also plans to retire Rose’s uniform No. 14 that weekend.
“I have to thank the commissioner for obviously giving the Reds permission to do what they’re going to do in June. He had to give his blessing, and I’m happy about
that,” said Rose.
Manfred also “gave his blessing” for Rose to attend the Syracuse Chiefs’ event at the Oncenter, Rose added.
Tioga County seals deal for Crown Cork & Seal plant
OWEGO — On Jan. 10, Gov. Andrew Cuomo’s office announced an agreement between Crown Holdings and New York State to site a manufacturing facility in the Tioga County Industrial Park located in the town of Nichols, five miles west of Owego. Crown Holdings, Inc. (NYSE: CCK) is the parent company of Crown Cork & Seal
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OWEGO — On Jan. 10, Gov. Andrew Cuomo’s office announced an agreement between Crown Holdings and New York State to site a manufacturing facility in the Tioga County Industrial Park located in the town of Nichols, five miles west of Owego.
Crown Holdings, Inc. (NYSE: CCK) is the parent company of Crown Cork & Seal USA, Inc., which will operate the facility. The 525,000-square-foot plant, situated on 40.66 acres, will produce metal beverage cans (two lines) for distribution to Northeast customers, according to Thomas T. Fischer, VP for investor relations and corporate affairs at Crown. The company, looking to increase its production capacity, projects investing $132.8 million in the project, its first new manufacturing facility built in the U.S. in the past 20 years.
The Crown announcement follows other announcements that have buoyed job prospects in the area. “Tioga County is moving dirt,” says LeeAnn Tinney, director of the county’s Economic Development & Planning (ED&P) office. “In addition to the jobs Crown will create, the recent FedEx cross-dock and Owego Gardens construction plus the Tioga Downs Casino [Racing & Entertainment] expansion will conservatively total 750 net, new jobs, helping to compensate for the jobs we’ve lost and giving the area a real boost. Also, the 750 jobs have a multiplier effect, because these jobs create additional area jobs to support the new employment. The sign outside my office promotes Tioga County as offering ‘greener pastures’ for economic development: these projects really support our claim.”
Fischer says Crown considered a number of sites and chose Nichols because it had the best location from a logistics and transportation standpoint. (The site is within a mile of the Lounsberry exit, number 63, on Interstate 86.) He declined to identify the other sites considered. Crown reached out to the Tioga ED&P office to begin discussions in June 2015, having already contacted Empire State Development (ESD). The new facility will include 150,000 square feet of warehouse space and another 375,000 square feet of manufacturing space. “Crown plans to run the plant three shifts a day, year-round,” notes Fischer.
Infrastructure improvements are needed to pave the way for manufacturing.
“The process for making cans consumes a lot of energy and water, requiring infrastructure build-out. The [Tioga County] Industrial Development Agency (IDA) has committed $3 million for sewer and water upgrades as well as other infrastructure needs,” Tinney says. “New York State Electric & Gas (NYSEG) is bringing in electrical and natural-gas upgrades to meet Crown’s energy needs. The project is on a fast track.”
Fischer says the plant is scheduled to start up operations in the first quarter of 2017. A visit on Jan. 7 by this reporter to the site confirmed that substantial site preparation and infrastructure build-out are underway.
Incentives
According to Gov. Cuomo’s office, New York was in competition with other states to attract the plant. As an inducement to Crown, the state offered up to $8.1 million in Excelsior Jobs Program tax credits and a capital grant of up to $6.9 million. The performance-based incentives are dependent on jobs created. The Tioga IDA authorized a sales-tax exemption on construction materials estimated at $1.344 million, of which the state absorbs half of the cost. There is no mortgage recording tax, because Crown doesn’t plan to take out a mortgage. The IDA also proposed a payment-in-lieu-of taxes (PILOT), based on the estimated real-property assessment. The original PILOT called for an annual payment of $300,000 over a 30-year period, at which point the company would pay the full assessment. In later negotiations with Crown, it was modified: The company will make an annual payment of $300,000 for the first 10 years with an annual increase of 1 percent for the remainder of the term. According to the estimated financial model, Crown would receive a cumulative property-tax abatement of $44.7 million. NYSEG is also committed to providing an economic-development Energy Infrastructure Grant. The governor’s office did not reveal the amount of the grant in its announcement.
The PILOT offered by the Tioga County IDA was not a standard PILOT. “Usually, a PILOT has a 10-year life with 10 percent incremental payments each year,” explains Tinney. “Crown’s financial projections indicated a longer period was required to warrant building the plant. The IDA, and ultimately, the [county] legislature agreed, unanimously, based on the substantial benefits the project would generate. First, Crown paid $1 million for the property, which had lain unused since 2002 when Best Buy built its distribution center next door. Second, the company is making a private investment of another $42 million to construct the building and nearly
$90 million in capital equipment, a strong sign of its commitment and financial strength. Third, the 166 jobs that will be created plus a multiplier of 1.68 (other county jobs created based on Crown employment) means the project will ultimately create a total of 279 jobs.
“The Crown positions pay, on average, $22 to $24 per hour, substantially higher than the average wages paid in the county, plus a comprehensive benefit package,” Tinney says. “The annual Crown payroll is projected in 2018 at approximately $7.7 million plus another $4.5 million from the multiplier effect. That adds up to more than $360 million over the term of the agreement. Add to this the sales-tax revenue generated from consumer purchases and the annual PILOT payment (approximately $10 million over the term) from land that had generated no tax revenue. Fourth, the project will create 550 construction jobs in Tioga County plus another 319 jobs in the county. The construction jobs alone will generate an estimated $25 million in payroll. And finally, Crown has a long track record of supporting communities in which it operates. That’s why the state and county were eager to work with Crown in bringing high-tech manufacturing jobs here.”
Crown Holdings is one of the largest packaging companies in the world with 150 manufacturing plants in 40 countries. The company’s 23,000-plus employees produce food cans, metal vacuum closures, aerosol cans, and beverage cans. Corporate and divisional headquarters are located in Philadelphia. The $9.1 billion in net sales (2014) is generated from the Americas ($3.4 billion), Europe ($4.5 million), and the Asia/Pacific region ($1.2 billion). The beverage products represent 58 percent of sales; food products 27 percent; and specialty packaging, aerosols, and other products 15 percent.
The Crown customer list includes S.C. Johnson, Dr. Pepper/Snapple Group, Bristol-Myers Squibb, Coca-Cola, Cott, ABInBev, Heineken, Heinz, and Carlsberg. The company serves a stable, mature market combined with growth in developing markets. The company was founded in 1892 by William Painter. Crown’s stock closed at $45 a share on Jan. 25, giving the company a $6.27 billion market capitalization.
No wonder Tinney is all smiles. “Growth brings growth,” she intones. “Projects such as Crown are putting Tioga County on [site-selectors’] radar screens. ED&P, the IDA, and ESD worked well together to respond quickly and affirmatively to the opportunity. The Crown project is confirmation that we can compete effectively for private investment when it comes to economic development. When it comes to agriculture, tourism, and technology, just think of Tioga County as greener pastures.”
Discussing International Business with Mike Wetzel
The purpose of this column series has been to provide a platform for individuals that are involved in international trade to share their stories and
CNY Executive Q and A: A conversation with Pinnacle’s Gregg Kidd
Editor’s Note: CNY Executive Q&A is a feature appearing regularly in The Central New York Business Journal, authored by guest writer Jeff Knauss, who is president of his own digital-marketing firm. In each edition, Jeff chats with a different executive at a Central New York business or nonprofit, with the interview transcript appearing in a conversational
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Editor’s Note: CNY Executive Q&A is a feature appearing regularly in The Central New York Business Journal, authored by guest writer Jeff Knauss, who is president of his own digital-marketing firm. In each edition, Jeff chats with a different executive at a Central New York business or nonprofit, with the interview transcript appearing in a conversational Q&A format.
In this issue, I speak with Gregg Kidd, founder of Pinnacle Investments and CEO and board chairman of Pinnacle Holding Company, LLC in Syracuse.
KNAUSS: Tell me a little about your background, where you grew up, an your career path.
KIDD: I grew up in Fulton. I went to Fulton High School and played sports — football, basketball, and baseball. I went to Ithaca College and graduated in 1984. After college, I had a couple different jobs before I got into the financial-services industry. I spent 10 years as a VP at Smith Barney. I left in September 1995 and started Pinnacle Investments with Dan Raite and one other assistant. Pinnacle has grown to five companies with 65 employees.
KNAUSS: When you first started, what was your vision for what you wanted Pinnacle to be?
KIDD: From the beginning, I wanted to create a business where anybody that worked with us would have a voice to offer ideas for the business to consider. I also wanted to create a business where people that were important to us would become equity owners in the firm so that they have skin in the game. That ownership builds loyalty.
KNAUSS: What qualities do you look for when you’re hiring people?
KIDD: A very positive attitude and people that want to win. I go back to my background growing up in sports. I think business is the ultimate sport. It’s all about winning because if you don’t win, you lose. I think people that want to win and want to be part of a team become successful.
KNAUSS: Give me a quick elevator pitch for all five companies that are under the Pinnacle family. Tell me a little bit about why you’ve branched out into some of these other business lines.
KIDD: The common denominator is that they are all service-oriented businesses with financial services. We started as a broker-dealer, which is your typical brokerage firm. We ended up with an asset management company managing portfolios for high-net-worth individuals and companies through relationships that I brought the company. I knew a gentleman that worked for an insurance company, Joe Masella, and we ended up through that relationship starting an asset-management company, and then we acquired an insurance business. We’ve got a 403(b) [retirement planning] business, [called Pinnacle Confidential Planning] that is for school districts. That came from that acquisition of the insurance company where we saw another opportunity and created a 403(b) business. We recently just launched Pinnacle Employee Services, which allows clients to manage human resources, payroll, employee benefits, etc. That was more of an opportunity that came to us. Some of these opportunities aren’t planned. They just happen, and we have to take advantage of them. We are very entrepreneurial minded here, and we are constantly looking for opportunities that we believe can be good for our clients, for our company, and for our shareholders.
KNAUSS: Were you attracted to leadership roles from a young age?
KIDD:Yes, in sports I was a natural leader. I was a quarterback on the football team, a pitcher and left fielder in baseball, and a point guard in basketball. I was comfortable leading people and not afraid to try to direct people, to take criticism, get booed, and be told you stink. I believe all those things helped me for the future in business. Being thick-skinned is very helpful in the business world. I would say being able to transfer the skill sets that I’ve learned, and the criticism I’ve faced have helped shape me into the entrepreneur I am today.
KNAUSS:What do you feel differentiates Pinnacle from some of your competitors on a local, regional, or national level?
KIDD: Well, I’m not sure there are any firms that are running the way we do as far as the way we offer ownership in the firm to people that work for us. The competitors tend to be owned by one or two people, or are the larger companies that are headquartered in New York City and have a million shareholders. For a small firm, I think we’ve got an interesting business model that is successful, which involves people buying into the story and also getting rewarded with ownership in the company. I believe that is the biggest differentiator between other businesses and ours. Also, we’re taking risks that nobody in this community is taking. We have the only equity hedge fund in Central New York. We have a mutual fund that is our proprietary fund. We’re looking to start a private-equity, venture-capital fund. These are not things that businesses in Central New York typically do. Again, we’re looking to create a company in Central New York that is unique, that is a place where ideally kids who graduated from college would want to work at instead of going to a place like New York City or Silicon Valley to find a career.
KNAUSS: What is your outlook on Central New York?
KIDD: I believe that Central New York needs to become more of a risk-oriented community. It’s a low risk, low return environment here, and I think somehow we have to change the thinking of this community that views risk as a bad thing. We have great universities around here. We’ve got students graduating that are extremely talented and most of them leave once they graduate. We have to create a new environment with risk capital and people with a mindset that risk is a good thing; it’s not evil. There’s an embedded mindset in this community that risk is a bad thing and people tend to want to do today exactly what they did yesterday because it’s safe. It’s pervasive in our community. Somebody needs to come in with a sledgehammer and just blast that mindset and create a whole new mindset in this community. ν
About the author: Jeff Knauss is managing partner & president of a digital-marketing firm, DigitalHyve.com, and has always been interested in hearing successful executive’s stories. He lives in Camillus with his wife Heta and son Max. For more, check out his blog at www.CnyCeo.org
M&T Bank operating profit rises in Q4
M&T Bank Corp. (NYSE: MTB), Central New York’s largest bank ranked by deposit market share, recently reported that its fourth-quarter profit rose, excluding one-time expenses related to its long-delayed acquisition of Hudson City Bancorp, Inc. (NASDAQ: HCBK). Net operating income at M&T rose 20 percent to $338 million, or $2.09 a share, in the latest
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M&T Bank Corp. (NYSE: MTB), Central New York’s largest bank ranked by deposit market share, recently reported that its fourth-quarter profit rose, excluding one-time expenses related to its long-delayed acquisition of Hudson City Bancorp, Inc. (NASDAQ: HCBK).
Net operating income at M&T rose 20 percent to $338 million, or $2.09 a share, in the latest quarter, from $282 million, or $1.95, in the fourth quarter of 2014. That beat analysts’ expectations of $1.96 a share.
The operating results exclude the effect of the Hudson City deal, which took effect Nov. 1, and other items, the banking company said in its earnings report issued Jan. 19.
M&T made a cash payment of $2.1 billion and issued nearly 26 million common shares to complete the acquisition. Assets acquired in the transaction totaled about $34.6 billion, including $19 billion of loans and $7.9 billion of investment securities, while liabilities assumed totaled $31.5 billion, including $17.9 billion of deposits and $13.2 billion of borrowings, the banking company said.
Merger-related expenses incurred during the fourth quarter of 2015 totaled $61 million after-tax, or 40 cents a share.
With those costs included, M&T generated net income of $271 million, or $1.65, in the latest quarter, down from $278 million, or $1.92, in the fourth quarter of 2014.
“M&T posted strong financial performance in the fourth quarter, reflecting our recent merger, growth in revenues, controlled expenses and continued solid credit quality… On November 1, we welcomed our Hudson City colleagues and valued customers into the M&T family. The full integration of Hudson City’s operations will be completed in February after the conversion of the deposit system and branch network. The merger with Hudson City brings exceptional opportunities for M&T, and we are excited to offer our broad array of products and services to both existing and new customers,” René F. Jones, vice chairman and chief financial officer at M&T Bank, said in the earnings report.
M&T had total assets of nearly $123 billion at the end of 2015, up 27 percent from almost $97 billion a year earlier. It reported total deposits of $92 billion at year-end, up 25 percent from nearly $74 billion a year prior.
M&T Bank, headquartered in Buffalo, operates banking offices in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virginia, West Virginia, and the District of Columbia. Trust-related services are provided by M&T’s Wilmington Trust-affiliated companies and by M&T Bank.
Sweeping Changes to Claiming Social Security Benefits
The budget bill signed on Nov. 2, 2015 by President Obama included sweeping changes in the claiming of Social Security benefits. The changes ended two major Social Security claiming strategies for married couples. No more file and suspend or restricted application. If you have not filed for Social Security benefits within 180 days of the
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The budget bill signed on Nov. 2, 2015 by President Obama included sweeping changes in the claiming of Social Security benefits. The changes ended two major Social Security claiming strategies for married couples.
No more file and suspend or restricted application.
If you have not filed for Social Security benefits within 180 days of the bill’s passage on Nov. 2, you will no longer be able to use the program’s “file and suspend” rule. This claiming strategy has permitted one member of a married couple to file for Social Security, thereby enabling a husband or wife to file for a spousal benefit. The spouse, meanwhile, could suspend his or her own retirement benefit, which then could grow due to delayed retirement credits by 8 percent a year.
In other words, the typical file and suspend strategy in which spouse A files for retirement benefits and immediately suspends, to allow spouse B to file for spousal benefits while Spouse A’s retirement benefit continues growing is eliminated.
The changes also will end the ability of anyone not having attained the age of 62 by the end of 2015 to file what is called a restricted application and collect only a spousal benefit while letting his/her own retirement benefits rise by 8 percent a year for up to four years, until age 70. Instead, filing for spousal benefits will be deemed by Social Security to also trigger a person’s own retirement benefit. The agency will pay only an amount that is roughly equal to the greater of the two benefits. Right now, deeming only applies to benefits claimed before age 66. But the new law will eventually extend it to older filers as well.
Exceptions/opportunities.
Depending on your age, you may have a window of opportunity. If you are at least age 66, you can continue to file and suspend until April 29, 2016. By doing so, your spouse may be eligible to receive benefits after the law becomes effective. Plus you can continue to receive delayed retirement credits for up to four years.
Second, if you are 62 or older as of the end of this year, you are grandfathered in and will not be subject to the expanded deeming rules. This means that if you filed (or filed and suspended) for your own retirement benefits (or do so in the next six months), your spouse can still file a restricted application for just spousal benefits. But to qualify for this exception, your spouse will need to be at least 62 by the end of 2015.
Survivor strategies do not change. Widows and widowers can still file a restricted application for survivor benefits while their own benefit builds delayed credits.
Ami S. Longstreet is a partner at the Syracuse–based law firm Mackenzie Hughes. This article is drawn from the firm’s Plain Talk blog. Longstreet works with businesses and individuals to help them understand estate and trust planning and administration as well as elder law, including asset protection and Medicaid planning, and planning for individuals with disabilities. Contact her at alongstreet@mackenziehughes.com
Reduce Fiduciary Risk with an Effective Investment Policy
Human-resource officers and managers are often asked to chair or sit on a retirement-plan committee responsible for administrative tasks. In this role, a committee member takes on fiduciary responsibilities to plan participants and beneficiaries, and can be held personally liable for fiduciary breaches under federal law. As legal counsel, we endeavor to manage this risk
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Human-resource officers and managers are often asked to chair or sit on a retirement-plan committee responsible for administrative tasks. In this role, a committee member takes on fiduciary responsibilities to plan participants and beneficiaries, and can be held personally liable for fiduciary breaches under federal law. As legal counsel, we endeavor to manage this risk for our clients through guidance on good governance, indemnification protection, and the adoption of effective policies. Effective management of employee-benefit plans will meet this fiduciary duty to participants while at the same time improving results for employees and minimizing potential liability exposure of plan managers.
We are sometimes asked to review a proposed investment policy statement (IPS) related to a 401(k) or 403(b) retirement plan. Although these plans are not required to have an IPS, we recommend having one as a guide for prudent plan administration. Most plan service providers and record keepers will have a standard form or model available for use by the employer adopting the plan. Models can be useful, but any model should not be adopted without discussion and agreement with its terms. Because an IPS is a policy of the employer in its role as plan administrator, and not one of the outside record-keeper or financial consultant, it’s important for a plan committee to discuss and “own” its policies. Furthermore, a carefully designed policy will not create additional responsibilities for a plan committee or officer beyond those imposed by law.
An effective IPS will describe the roles and duties of a plan committee, other responsible officers, or plan service providers. It provides a framework and process for investment decisions as well as indemnification for employees who are charged with fiduciary duties. In many cases, there may be a financial advisor or consultant who is engaged to carry out the policy in some capacity. Once a policy has been discussed and adopted, it helps in running efficient committee meetings and in working effectively with outside service providers. Adopting a well-crafted IPS is an important element of prudent plan administration.
An IPS should not dictate how many investment choices will be available for participants or the asset categories to be covered by plan options. Using factors described in the policy, a plan committee can handle the tasks of monitoring current options, assessing their potential for future performance, and making changes in a plan’s fund options. By creating and following a disciplined investment policy, a plan committee greatly reduces its risk of fiduciary liability when investment markets become volatile.
There is a downside in adopting an IPS and then ignoring it. Our experience has been, however, that once discussed and adopted, an IPS brings better focus and engagement by committee members, more efficient meetings, and a higher level of fiduciary performance on behalf of plan participants.
Daniel R. Sharpe and Michele O. Heffernan are attorneys in the Buffalo office of the Syracuse–based law firm Bond Schoeneck & King PLLC. Contact Sharpe at dsharpe@bsk.com. Contact Heffernan at mheffernan@bsk.com. This viewpoint article is drawn from the firm’s “New York Labor & Employment Law Report” blog.
Why Your Partnership Needs a Formal Agreement
If you are in business with a partner or partners, you need a formal agreement for the following reasons: Your business may already be a partnershipUnlike other types of business entities, such as a corporation or a limited-liability company, a partnership can be formed without any written agreement or filing with the government. New York
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If you are in business with a partner or partners, you need a formal agreement for the following reasons:
Your business may already be a partnership
Unlike other types of business entities, such as a corporation or a limited-liability company, a partnership can be formed without any written agreement or filing with the government. New York law defines a partnership as an association of two or more people formed to carry out business for profit as co-owners. Courts have looked to the conduct, intentions, and relationship between parties in determining whether a partnership existed. As this determination depends highly on the individual facts and circumstances of a relationship, it is a frequent source of litigation.
The default rules may not be what you expect
If your partnership lacks a formal agreement, the New York Partnership Law provides for many of the key provisions that are typically included in such an agreement. However, much of this law represents an attempt by the state legislature in 1919 to create a set of rules for every partnership, whether it had two members or 100. Many of these 100-year-old, one-size-fits-all provisions may not be desirable for your particular business.
Unless modified by a partnership agreement, the Partnership Law provides that:
– the partnership automatically enters dissolution upon the death or personal bankruptcy of a partner
– the partnership can be dissolved by any partner
– every partner has an equal right in the management of the business
– each partner shares in the profits and losses equally
Benefits of a written partnership agreement
In addition to modifying the default rules set by the Partnership Law, a written partnership agreement can help prevent a falling out with your business partners by clearly outlining individual partners’ rights and obligations. If your partnership does face litigation from a displeased partner or former partner, a written agreement can help bring closure to any action more quickly and at less cost than if there was no such agreement. Additionally, as many disputes arise after the death or disability of a partner, a written agreement can be critical to ensure a fair and equitable resolution for all parties.
Partners can have unlimited liability
Unlike other types of business entities, an ordinary partnership does not provide for limited liability. The Partnership Law provides that the individual partners potentially can be personally and entirely liable for the wrongful acts of another partner that were performed in the ordinary course of business or for another partner’s misappropriation of a third party’s money or property. Additionally, partners can also face liability for the ordinary debts and obligations of the partnership.
Options to limit liability
The Partnership Law allows partnerships to limit individual partners’ liability through the formation of either a limited partnership or a limited-liability partnership. Other options include organizing your business under a different entity such as a business corporation or a limited-liability company. However, in order to take advantage of these limited-liability entities, your business must comply with strict procedural requirements, including making a written filing with either the county clerk or the Secretary of State’s office among other actions.
John J. Sierotnik is an attorney with Mackenzie Hughes LLP in Syracuse. His practice areas include business, intellectual property and technology, litigation, and mergers and acquisitions. This viewpoint article was drawn from the Mackenzie Hughes blog, called “Plan Talk.” Contact him at (315) 233-8210 or email: jsierotnik@mackenziehughes.com
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