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Start-Up Companies and Venture Capital
Donahue v. Rodd Electrotype Co. of New England, Inc.
While founders will typically incorporate in either Delaware or their home state, incorporating in the home state may not be without consequence. For example, closely-held corporations in Massachusetts will be subject to Donahue's requirement that shareholders of Massachusetts closely-held corporations owe each other duties of loyalty equivalent to that of partners.
Massachusetts Supreme Judicial Court
367 Mass. 578
1975-05-02
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