Wrigley, Barlow, Ford

Wrigley, Barlow, Ford - princeton Expert witnesses...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
2/19/2014 Barlow is the rule of business judgement and van gorkom is the exception to it Think about how the law is telling these executives what can be done (Barlow) Wrigley Minority shareholders are suing Mr. Wrigley (who owns 80% of the company) Mr. Wrigley is protected by the business judgement rule in case he makes the wrong decision Barlow Stockholders vs. AP manufacturing Stockholders are suing the executives of the smith company about a donation that was made to Princeton University in excess of $1500 The company did not have consent to do it Ultra vires - the corporation does not have the power to give this money away Ultra vs Intra…. Instead of maximizing the profit of the business, the executives are making a donation to
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: princeton Expert witnesses - president of princeton, chairman of the board of Standard Oil of NJ Was an important donation because there were no rich people in 1953. ..there was a 90% individual tax rate at the top bracket Ford v. Dodge Dodge brothers (minority stakeholders) are suing Henry Ford for not paying out dividends even though the company was profitable and able to pay them Court ruled in favor of the Dodge brothers Ford said he wanted to make cheaper cars and pay better wages with that money that he withheld Result :It’s wrong for corporate executives to make less profit if they have the motivation of treating the workers better Harsh statement of the doctrine of corporate purpose...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern