Profit-Sharing Plans and Tax-Exempt Organizations - A New Benefit for All
Article Abstract:
Tax-exempt institutions can now offer profit-sharing plans to its employees. In the past, there has been no incentive, like a profit-sharing plan, that a tax-exempt institution could offer its employees as a reason to stay working there and working productively. The decision to allow profit-sharing plans to these institutions has added some light to what has been a rather bleak economic scenario for them. Because of the economy, they have been hit on the profit side with reduced donations and on the expense side with inflation. Especially hard hit, has been the health care industry. The new profit-sharing plans must be designed with many guidelines and safeguards in mind. Tax-exempt institutions have to watch very closely that they retain their tax-exempt status.
Publication Name: Taxes: The Tax Magazine
Subject: Law
ISSN: 0040-0181
Year: 1984
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Judicial Signposts
Article Abstract:
A review of four court cases involving the use of employee benefit plans in corporate acquisitions and takeovers is presented. Background, litigation, key issues, court decisions and consequences are provided for each case. Major issues include employees' rights to make decisions on tendering shares held in their employee benefits plans, conflict of interest surrounding inside operation of employee benefit plans and illegal use of stock to gain additional pension fund monies for further acquisition. Some of the cases involve hostile takeovers and some involve use of employee benefit plans to create takeover defenses. These court decisions establish guidelines and parameters for plan usage in acquisition and takeover.
Publication Name: Mergers & Acquisitions
Subject: Law
ISSN: 0026-0010
Year: 1984
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