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insurance for individual hotels, charging each hotel an allocated
portion of the cost.
Prior to 1984, HIC’s senior vice president for development
reviewed management contracts because HIC did not have in-house
counsel. For later years, when HIC had equity participation in a
hotel and/or Hyatt ’s money was at risk, HIC’s legal department
played an integral role in the legal aspects of the transaction.
Legal counsel promoted the formation of separate corporations
within the Hyatt International group so that the risk of legal
liability would fall on individual hotels instead of the group.
The legal department tracked the registration of the Hyatt trade
names and marks in foreign jurisdictions, employing a U.S. law
firm, which in turn contracted with a foreign law firm to perform
the work. The tracking was primarily for cost containment of
registration expenses.
HIC’s chief financial officer was responsible for
maintaining the financial accounting records of HIC and its U.S.
subsidiaries within the consolidated group. He was also
responsible for preparing consolidated financial statements for
use by HIC’s board and during the annual audit, preparing
Federal and State tax returns and meeting other governmental
filing requirements, and managing the annual certified audit
process. HIC’s staff internal auditor was sent to review books
and records of hotels and subsidiaries.
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