In the last decade, social media platforms have embedded themselves in the human resources function in companies worldwide. Companies like LinkedIn and Indeed have built empires based on clever deployment of social media to assist in the hiring and networking processes, even as human resource professionals use social media for more than finding the next great executive or software engineer to propel the business forward. Social media plays a key role in hiring, firing and all aspects of employee management and relations. Various studies and surveys have shown that up to 80% of all companies make some use of social media platforms in human resource decisions.
Forming a legal entity is one of the first big steps for a startup, so if you have reached this stage, congratulations! Now comes the hard part: choosing which type of legal entity to form. Company founders often ask us for advice on the kind of entity they should form. For many startups, making the right decision on the type of entity makes it easier to attract investors and recruit and retain employees. The wrong decision can lead to unnecessary tax burdens, time-consuming legal formalities or roadblocks while trying to attract investors. So what are my options as a company founder? Let’s dive in:
Whether you started thinking about incorporating earlier this morning or you’re a serial founder about to launch your fifth unicorn, the Delaware incorporation might seem like an odd phenomenon. We often hear “Why do so many companies incorporate in Delaware?” and “I’m a proud Californian—I’ve never even heard of Rehoboth Beach!” While there are situations where we advise clients to incorporate in states other than Delaware, the truth is that Delaware is often the best choice—and likely not for the reasons you may have heard. For example, Delaware does not have special rules allowing secret corporations, is often not the cheapest jurisdiction for incorporation, and is not some sort of tax haven. That being said, setting up shop in Delaware does offer compelling perks.
A California state appellate court sided with Twitter and put a halt to a lawsuit filed against the social media service by white nationalist Jared Taylor. In the lawsuit, Taylor alleges he was wrongly banned from Twitter in December 2017 when Twitter permanently suspended Taylor and his publication, American Renaissance, soon after it announced a crackdown on “violent extremist groups.” In his lawsuit, Taylor claimed that the Twitter account suspensions violated several California laws, including one dealing with unfair business practices.
The IoT is a criminal cryptojacker’s delight; new patents suggest Walmart may have an eye on virtual reality in its future; MIT Technology Review has a few technologies worth thinking about in 2018; and more …
In their recent commentary, AI: Black boxes and the boardroom, colleagues Tim Wright and Antony Bott examine how well-founded concerns over the inscrutability of artificial intelligence processes and the bad outcomes that can be triggered by bad data can be alleviated by certain common sense approaches in the boardroom.
Does one person’s Twitter account a trade secret make? A newspaper in Virginia apparently thinks so. This past week, the owner of The Roanoke Times sued former Virgina Tech sports reporter Andy Bitter under the federal Defend Trade Secrets Act, among other things, because he refused to give up the login information for a Twitter account.
Last Tuesday afternoon, Elon Musk tweeted from his personal handle, “Am considering taking Tesla private at $420. Funding secured.” These words drove Tesla’s share prices up by 10% on Tuesday before Nasdaq halted trading, increasing Musk’s estimated net worth by $1.4 billion dollars.
Since then, there has been a lot of speculation about Musk’s tweet, including about whether it violated SEC rules. News outlets reported last week that the SEC has contacted Tesla to inquire as to the accuracy of the tweet, a move that could indicate the start of a more formal investigation.
The European Parliament adopted a resolution earlier this month to suspend the EU-U.S. Privacy Shield agreement. The Privacy Shield is a protocol that provides for the exchange of personal data between the EU and the United States for commercial purposes. Adopted in 2016 after the European Court of Justice invalidated the Safe Harbor arrangement, the shield is intended to safeguard the “fundamental privacy rights” of European citizens with respect to data transfers between signatory countries.
Every day, millions of people are being unwittingly recorded by others. Every person you see walking down the street likely has a means to record your image and transmit it to billions of people at a whim. But, would you have ever expected that your Lyft or Uber ride was being broadcast across the globe for others’ entertainment? For some passengers in St. Louis, this was their reality.