Employees In All But Name: Where's The Privilege?

By Andrea Reid and Daniel Roberts (July 11, 2017, 12:14 PM EDT) -- Times are changing. The virtual business model is increasingly replacing traditional corporate structures. This is particularly popular among biotech startup companies. Companies working under a virtual business model have fewer bona fide employees; most core functions are fulfilled by external parties. A company enjoys great flexibility and optimizes limited financial resources using this model.[1] Such external parties can be consultants, contract employees, investors, business counselors, lawyers, and are sometimes employees of another company such as a contract research organization (CRO). Often, one or more of these persons enjoy a seat as a member of the board of directors. These parties are often heavily involved in both business and legal strategy sessions, the latter of which frequently involve communications traditionally protected under attorney-client privilege....

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