Lecture 11

Lecture 11 - Fiduciary duties Recap Tie law to...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Fiduciary duties Recap Tie law to practicalities. The CEO can’t be in room due to conflict of interests beware of law suits, and avoid financial interests. Cronism: social relationships, (non-financial) When choosing a committee, avoid people with social ties. • How much responsibility does the Board of Directors have to ensure that when a Board Director says, “I am impartial”?-A reasonable amount. They need to prove it to jurors. Should you consider what will happen to the employers? Assuming straight cash, if you got $24.50/share or $23/share, what do you do? Shareholders want the highest price. Bottom line: At the end of the day, the corporation is the stockholder. You don’t look at other constituents. Only when there are slight differences in price (pennies!) is it okay. THEREFORE: GET BEST PRICE. The Board works with the acquirer to mitigate harm to employees. Now, assume transaction is in Stock.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/04/2012 for the course FIN 400 taught by Professor Kedia during the Spring '12 term at Rutgers.

Page1 / 2

Lecture 11 - Fiduciary duties Recap Tie law to...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online