McGuireWoods Tysons partner Thomas E. Spahn authored a column on issues of ownership in closely held corporations that was published by the Corporate Counsel Business Journal in its November-December issue.
Spahn discussed a recent case that illustrates how ownership issues can be thorny in closely held corporations, and why it’s important to vet a potential client’s corporate governance documents. “ Every court agrees that when a lawyer represents a corporation, the entity owns the privilege as the ‘client.’ But that analysis can be difficult in closely held corporations,” Spahn wrote.
“[L]awyers representing closely held corporations should take steps to ensure that their retention by the majority owners complies with the corporate governance documents,” he added.
The article was originally published as one of Spahn’s weekly “Privilege Points” alerts on attorney-client privilege and work product developments.