“An improper application of the Colorado Securities Act in this case will directly impose hardship and increase compliance costs on small business owners”
DENVER, Colo. (Sept. 8, 2021) – The NFIB Small Business Legal Center filed an amicus brief in the case Chan v. Heartland Energy Development Corporation (HEI) at the Colorado Supreme Court. The case primarily concerns whether general partners can actively participate in businesses using their general business experience even if they lack industry-specific experience.
“An improper application of the Colorado Securities Act in this case will directly impose hardship and increase compliance costs on small business owners,” said Karen Harned, Executive Director of NFIB’s Small Business Legal Center. “We are hopeful the Colorado Supreme Court will affirm the lower court’s decision and protect Colorado small businesses from unnecessary compliance costs.”
“This case has the potential to impact the state’s small businesses with unexpected and expensive compliance costs,” said Tony Gagliardi, NFIB’s Colorado State Director. “Colorado small businesses urge the Supreme Court to put this issue to rest and affirm the lower court’s decision.”
NFIB believes the Court of Appeals’ decision should be affirmed and hold its application of Williamson’s second factor by embracing consideration of both the partners’ general business experience and the partners’ industry-specific experience. NFIB previously filed an amicus brief in the case at the Colorado Court of Appeals arguing that Colorado law should be clarified to reflect the truth that sophisticated and experienced business people can frequently participate meaningfully in the operation of a business without prior specific experience in that business’s particular industry segment.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s court. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.
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