Today's Trending News

M&A Update: Delaware Supreme Court Clarifies the “Ab Initio” Requirement for Business Judgment Review

In Flood v. Synutra Int’l Inc., the Delaware Supreme Court clarified its holding in Kahn v. M&F Worldwide Corp. (“MFW”). In MFW, the Court held that the business judgment rule—rather than the entire fairness standard—applies to a controlling stockholder transaction if such transaction is conditioned “ab initio,” or at the beginning, upon approval of both an independent special committee of directors and the informed vote of a majority of the minority stockholders (the “MFW Conditions”).

Read the source article at Legal News & Business Law News

Additional Articles You May Like

Sign Up To Receive Our Free Newsletter