Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 109
United States of America
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Litigation
Are the courts
operating?
Generally, yes. Federal courts are operating, and state courts are available for
emergency relief. In general, courts are deferring items that are not urgent, and also
adjusting procedures to observe social distancing guidelines. An example of how
states are responding comes from New York, which has been the hardest hit U.S.
jurisdiction. The state courts took steps with the overarching goal of reducing the trial
courts’ backlog of pending and undecided matters, while encouraging settlement and
resolutions wherever possible, to free up the courts for the expected deluge in motion
activity in cases that have been – and will remain for now – essentially stayed. The NY
courts are now opening up more broadly.
For more details, please refer to our client alert here.
Tax
•
Government stimulus policy generally takes two forms: fiscal policy (direct payments
to individuals, business subsidies, and tax incentives) and monetary policy (central
bank intervention). The U.S. government is using tax policy to stimulate the economy
in response to the coronavirus (COVID-19) outbreak. These policy tools are contained
in the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act) and Families
First Coronavirus Response Act (FFCRA). The CARES Act offers some taxpayers an
opportunity to take immediate action to reduce their federal income tax liability as
they prepare their 2019 income tax returns. However, much of the CARES tax impact
will be delayed until income tax returns are filed for tax periods during the crisis,
which, for most U.S. taxpayers, began in 2020. Thus, in many cases, federal income
tax refunds (particularly refunds resulting from the carryback of net operating losses
(NOLs)) will not become available until income tax returns for 2020 are filed in 2021.
Nevertheless, some action may be taken in the short-term to accelerate the ability
of taxpayers to obtain income tax refunds this year, and some action may be taken
during the balance of 2020 to ensure that income tax refunds will be obtained when
2020 income tax returns are filed in 2021.
•
For more details, please refer to our client alert here.
•
Yes, in many cases taking advantage of legal concepts already on the books. Generally,
U.S. corporate law is specific to the state of incorporation, except for listed companies,
where federal securities law considerations are important. State law generally permits
adjournment of annual meetings for emergencies, and for the conduct of meetings
by remote means. State law generally allows for action by written consent without a
meeting in many cases. For private companies, those whose charters contain conflicting
provisions are generally reviewing changing them. For public companies, the long-held
idea that holding annual meetings online could suppress shareholder democracy has
been turned around, with many enthusiastically embracing the idea.
Has any new
legislation been
introduced in light
of COVID-19?
Company
law matters
Have any measures
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
Government measures in key jurisdictions
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