Voting – Board Responses to Shareholder Initiatives – Preserving the Power of the Board Flashcards
It is ________ for a defensive measure to a hostile takeover to have the effect of __________ the board of directors from discharging its fiduciary duties.
It is UNLAWFUL for a defensive measure to a hostile takeover to have the effect of PREVENTING the board of directors from discharging its fiduciary duties.
Is it unlawful for a defensive measure to a hostile takeover to have the effect of preventing the board of directors from discharging its fiduciary duties?
Yes. It is unlawful for a defensive measure to a hostile takeover to have the effect of preventing the board of directors from discharging its fiduciary duties. The directors of a corporation have a fiduciary duty to the corporation and the shareholders. The board’s fiduciary duty applies to its full extent in any contest for corporate control.
