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Asset Protection

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The Sarbanes-Oxley Act: Code of Ethics and Audit Committee Requirements


Asset Protection

Thousands of lawsuits are filed in this country every day of the week. If you are engaged in any business activity or if you have a professional practice, chances are that sooner or later you will be sued. And if you are sued, everything that you have worked hard to create will be placed in jeopardy. The costs of defending even a frivolous suit can easily reach $50,000 to $100,000. Once you get to court, you will find that the system is heavily weighted toward the sympathetic plaintiff, as judges and juries play Robin Hood with your money. These judges and juries are continually expanding theories of liability, and stratospheric damage and punitive damage awards are now routine. It is no longer uncommon for awards in negligence cases to exceed $1 million. It is almost as if our country’s justice system has become a lottery system and judges and juries seem to relish in giving away other people’s money in awarding jackpot verdicts.



Our legal system should hold people responsible for their acts. If someone causes injury, that person should be required to fairly compensate the victim for his loss. Not many people would seriously object to this principle. What has become a problem is that there is no protection against an innocent person being wrongfully held liable for damages that he or she did not cause or, perhaps of more concern, for “injuries” that do not even exist.



Who Needs Asset Protection?

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