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DE Court Applies Business Judgment Rule in Reviewing LBO

Robust procedural protections" can achieve business judgment rule review, even where the controlling stockholder retains a material interest in the ongoing company following the buyout.

13 minute read September 27, 2013 at 10:09 AM
By
Law.com Staff
DE Court Applies Business Judgment Rule in Reviewing LBO

M&A transactions involving publicly traded companies with controlling stockholders often present thorny issues for dealmakers and their legal counsel. Even in the case of a purchase by an unaffiliated third party, controlling stockholders understandably may seek to leverage their control positions to achieve results that best suit them.

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