In a case of first impression involving Facebook and Mark Zuckerberg, the Delaware Court of Chancery has held that stockholder ratification of an interested transaction, so as to shift the standard of review from entire fairness to the business judgment presumption, cannot be achieved without complying with the statutory formalities in the Delaware General Corporation Law for taking stockholder action. (Hat tip: Delaware Corporate & Commercial Litigation blog.)
Read the opinion: http://courts.delaware.gov/opinions/download.aspx?ID=231620.
Business Stage
Business Type
Premium Content
Off
Business Role
Accountant
Advisor
Analyst
CEO / COO / VP
CFO
Compliance Officer
Corporate Controller
Corporate Secretary
Entrepreneur
General Counsel
Investment Banker
Investor
Lawyer
Legal Administrator
Owner
Paralegal
Para-Professional
Venture Capitalist
Business Segment
Sole Proprietor
Single Establishment
Traditional Local Player
Tax Optimizer
Regional Operator - 1
Regional Operator - 2
Business Size
Small Business
Middle Market
Corporation
International Corporation
Small Law Firms
Customer Type
Customer
Prospect
Geography National
Delaware
Industry Type
Agriculture
Accounting
Advertising
Aerospace
Aircraft
Airline
Apparel & Accessories
Automotive
Banking
Broadcasting
Brokerage
Biotechnology
Computer
Consulting
Consumer Products
Cosmetics
Defense
Department Stores
Education
Electronics
Energy
Entertainment & Leisure
Executive Search
Financial Services
Grocery Health Care
Internet Publishing
Investment Banking
Legal
Manufacturing
Motion Picture & Video
Music
Newspaper Publishers
Online Auctions
Pension Funds
Pharmaceuticals
Private Equity
Publishing
Real Estate
Retail & Wholesale
Securities & Commodity Exchanges
Service
Software
Sports
Technology
Telecommunications
Television
Transportation
Trucking
Venture Capital
Lead Stage
Review
Content Type