Description
Task 1
Unit 7 Assignment
After reading chapter 7, please answer the following questions:
Chapter 7. Fiduciary Duty Law: The Responsibilities of Boards of Directors, Senior Executive Officers, and Controlling Shareholders
1. What is the standard of review that the Delaware Supreme Court used in Cheff v. Mathes to evaluate the validity of the board's decision in the principal case?
2. In what sense do the facts of the principal case give rise to a conflict of interest?
3. What is "greenmail?"
4. Describe the "poison pill" and the Delaware Supreme Court's position of validity concerning it.
Submission Instructions : Submit your written responses to the Unit 7 by attaching the report file in the Assignment Files of this lesson by midnight, Sunday.
Task 2
Visit the Newsroom at www.eeoc.gov. Review a recent press release which involves a harassment and / or discrimination claim. You should summarize the facts of the case, including the parties involved and the issues at hand. You also should note any federal laws which apply to the situation and what the outcome is / will be / should be based on the application of such laws to the case. Finally, using what you learn from the case, provide suggestions to management on how to handle a similar case in the future.
The assignment is to answer the question provided above in essay form. This is to be in narrative form and should be as thorough as possible. Bullet points should not to be used. The paper should be at least 1.5 - 2 pages in length, Times New Roman 12-pt font, double-spaced, 1 inch margins and utilizing at least one outside scholarly or professional source related to competitive strategy. The textbook should also be utilized. Do not insert excess line spacing. APA formatting and citation should be used.
Explanation & Answer
View attached explanation and answer. Let me know if you have any questions.
Task 1
1. The standard of review that the Delaware Supreme Court used in Cheff v. Mathes to
evaluate the validity of the board's decision in the principal case was established in Blish
v. Thompson Automatic Arms Corp., 30 Del.Ch. 538, 64 A.2d 581. The review stated
that regardless of the evidence provided, if there was satisfactory recorded oral testimony
supporting the findings, such findings would not be distributed by the court.
2. The characteristic danger in share purchase using corporate funds to eliminate a risk in
the corporate policy when a control threat is involved would give rise to a conflict of
interest. The court therefore agreed that the directors should be liable for justifying such
purchases as one principally in the interest of the corporate.
3. Greenmail is the practice of purchasing many shares in a company that are enough to
threaten an appropriation, then forcing the owners to purchase them back at inflated
prices so as to retain control of the company.
4. A poison p...
