Who’s in Charge – Is the Board Responsible to Monitor Its Financial Advisor or Vice Versa?

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In the case of In re Rural Metro Corporation Stockholders Litigation, the Court of Chancery of the State of Delaware held that the primary financial advisor retained by Rural/Metro Corporation aided and abetted the board in breaching its fiduciary duty of care.  Financial advisors should heed Vice Chancellor Laster’s prescriptions if they wish to avoid aiding and abetting liability.

 

Topics:  Board of Directors, Breach of Duty, Corporate Governance, Fiduciary Duty, Fiduciary Liability, Professional Liability, Shareholders

Published In: Business Torts Updates, Civil Procedure Updates, Finance & Banking Updates, Mergers & Acquisitions Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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