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Closing the Circle: A Stockholder That Nominates a Board Member Is Not Within the Company’s Circle of Confidentiality or Entitled...

Icahn Partners, LP, et al. v. Francis deSouza, et al. and Illumina, Inc., C.A. No. 2023-1045-PAF, order (Del. Ch. Feb. 19, 2024) - Under Delaware law, corporate directors, who bear responsibility for managing the company...more

Delaware Chancery MFW Framework Does Not Require Best Deal

As Kahn v. M&F Worldwide Corp. (MFW) establishes, the Business Judgment Rule must be applied to a transaction involving a controlling shareholder, if the deal is conditioned upon the approval of: (1) an independent special...more

Delaware Court of Chancery Applies MFW Analysis to a Nonmerger Transaction and Dismisses Stockholders’ Claims With Prejudice

In City Pension Fund for Firefighters and Police Officers in the City of Miami v. The Trade Desk, Inc., et al., the Delaware Court of Chancery dismissed the plaintiff’s challenge to a transaction that extended the controlling...more

The Corporate Guide: You’re a Corporate Director. What’s Next?

What duties apply to directors? In managing and controlling a company’s business and affairs, directors and officers of a Delaware corporation owe the simultaneous fiduciary obligations of acting with due care and loyalty...more

The Corporate Guide: Keeping Board Actions Conflict-Free

Why is director independence important? A court’s conclusion of whether the majority of a company’s board is independent could affect...more

An Entirely Fair Transaction Might Still Be Inequitable or Unjustified, and Must be Reviewed on That Basis

A common maxim under Delaware law is that “inequitable action does not become permissible simply because it is legally possible.” Schnell v. Christ-Craft Indus., Inc., 285 A.2d 437, 439 (Del. 1971). Consistent with that,...more

Delaware Court of Chancery Holds Number of Members in LLC Does Not Determine Whether Claims Are Direct or Derivative

In Clifford Paper, Inc. v. WPP Investors, LLC, et al., C.A. No. 2020-0448-JRS (Del. Ch. June 1, 2021), the Delaware Court of Chancery held that plaintiff Clifford Paper, Inc.’s (“CPI”) asserted derivative (as opposed to...more

Yes, Federal Investigations May Require Your Company to Comply With a Stockholder’s Books-and-Records Demands

Gross v. Biogen Inc., C.A. No. 2020-0096-PAF (Del. Ch. Apr. 14, 2021). On October 11, 2016, plaintiff Melvin Gross, served the first of four books-and-records demands on defendant Biogen Inc., under DGCL Section 220. Mr....more

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