Chapter 22: Management Companies, Leasing Companies and ESOPs
Chapter 22: Management Companies, Leasing Companies and ESOPs
Management Company Structures
Synopsis: Discusses the use of Management Company structures to absorb corporate liability and provide control functions.
Definition: Management Company -- A company formed primarily to act as a manager of another entity, distance control of the other entity from the owners, and absorb liabilities arising from the management function.
Offshore Management Companies
Synopsis: Discusses the uses of Management Companies formed in debtor haven jurisdictions.
Definition: Offshore Management Company -- A company formed in a foreign debtor having jurisdiction primarily to act as a manager of another entity, distance control of the other entity from the owners, and absorb liabilities arising from the management function.
Leasing Companies
Synopsis: Discusses the uses of Leasing Companies for risk management.
Definition: Leasing Company -- A company used to hire employees and lend those to the underlying business, to reduce profits in a liability-producing company or to shift employment liabilities away from a valuable business.
ESOPs
Synopsis: Discusses the use of ESOPs to further encapsulate liability in the underlying entity.
Definition: Employee Stock Ownership Plan (ESOP) -- A plan formed to benefit and incentivize the employees of a business, and which can qualify for advantageous tax treatment.
See also Revenue Ruling 2003-6
Management Company Structures
Synopsis: Discusses the use of Management Company structures to absorb corporate liability and provide control functions.
Definition: Management Company -- A company formed primarily to act as a manager of another entity, distance control of the other entity from the owners, and absorb liabilities arising from the management function.
Offshore Management Companies
Synopsis: Discusses the uses of Management Companies formed in debtor haven jurisdictions.
Definition: Offshore Management Company -- A company formed in a foreign debtor having jurisdiction primarily to act as a manager of another entity, distance control of the other entity from the owners, and absorb liabilities arising from the management function.
Leasing Companies
Synopsis: Discusses the uses of Leasing Companies for risk management.
Definition: Leasing Company -- A company used to hire employees and lend those to the underlying business, to reduce profits in a liability-producing company or to shift employment liabilities away from a valuable business.
ESOPs
Synopsis: Discusses the use of ESOPs to further encapsulate liability in the underlying entity.
Definition: Employee Stock Ownership Plan (ESOP) -- A plan formed to benefit and incentivize the employees of a business, and which can qualify for advantageous tax treatment.
See also Revenue Ruling 2003-6
Labels: asset protection, employee stock ownership plan, esop, leasing company, management company
