A recent Delaware Court of Chancery decision recited important nuances of fiduciary duty applicable to controlling or majority stockholders. In RCS Creditor Trust v. Schorsch, C.A. No. 2017-0178-SG (Del. Ch. March 18, 2021), the court explained that the fiduciary duties of a majority or controlling stockholder do not require self-sacrifice, nor do they mean
Chancery Discusses Revlon in Context of Granting Option to Sell Company
The Delaware Court of Chancery addressed a bevy of basic corporate litigation principles in the context of claims challenging the actions of directors, and determining which standards of review apply, and which procedural prerequisites need to be satisfied. In Carr v. New Enterprise Associates, Inc., C.A. No. 2017-0381-AGB (Del. Ch. Mar. 26, 2018), claims
Facebook’s Mark Zuckerberg Required to Follow Corporate Formalities
The Delaware Court of Chancery yesterday held, on a question of first impression, that a controlling stockholder must formally ratify a self-dealing transaction by a vote at a meeting of stockholders or by written consent in order to shift the standard of review from entire fairness to the business judgment rule. In Espinoza v. Zuckerberg,