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Marijuana Corporate Structures that Break the Rules

Submitted by Marijuana News on Thu, 06/04/2015 - 08:55

The subject of management companies has been cropping up a lot lately. Hilary Bicken and I were at a NORML conference in Aspen last weekend, and a number of the attorneys there, especially those with roots in the California medical marijuana community, had questions about dealing with management company structures. On a side note, we really like that NORML is still chugging along. A lot of voices for industry are popping up as different states legalize, and it is nice that NORML continues to be a voice for legalization and consumer advocacy; it is a good check on the corporate side of the industry. But back to management companies — what are they and why are they risky?

Management companies developed in the early days of California’s medical industry. Because California does not have a fully regulated state system for medical marijuana, companies that operate there generally need to organize...

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