9780314259660

Corporations: Law and Policy, Materials and Problems

by ; ;
  • ISBN13:

    9780314259660

  • ISBN10:

    031425966X

  • Edition: 5th
  • Format: Hardcover
  • Copyright: 2003-07-01
  • Publisher: West Academic

Note: Supplemental materials are not guaranteed with Rental or Used book purchases.

Purchase Benefits

  • Free Shipping Icon Free Shipping On Orders Over $35!
    Your order must be $35 or more to qualify for free economy shipping. Bulk sales, PO's, Marketplace items, eBooks and apparel do not qualify for this offer.
  • eCampus.com Logo Get Rewarded for Ordering Your Textbooks! Enroll Now
List Price: $132.00 Save up to $33.00
  • Rent Book $118.80
    Add to Cart Free Shipping Icon Free Shipping

    TERM
    PRICE
    DUE
    USUALLY SHIPS IN 3-5 BUSINESS DAYS
    *This item is part of an exclusive publisher rental program and requires an additional convenience fee. This fee will be reflected in the shopping cart.

Supplemental Materials

What is included with this book?

Summary

Updated to reflect changing trends and new judicial developments, Corporations: Law and Policy, Materials and Problems exposes students to the richness and complexity of corporate law, with carefully crafted and painstakingly edited cases. The book?s organization reflects the growing importance, doctrinally and structurally, of the business judgment rule. Each chapter includes a problem for class discussion, many of which place students in the role of corporate planners and allow instructors to highlight the real-world impact of doctrinal uncertainty concerning the scope of the director's duty of care. The fifth edition includes updated emphasis on the corporation as a set of rules meant to resolve intra-corporate conflicts and protect investor/creditor expectations. The book also provides expanded treatment of the role of institutional shareholders and outside directors in corporate governance; the debate surrounding state-chartering competition and the prominence of Delaware in U.S. corporate law; the duties of controlling shareholders; and SEC rules and Sarbanes-Oxley provisions affecting corporate disclosures and insider-trading duties.

Table of Contents

PREFACE v
ACKNOWLEDGMENTS xi
TABLE OF CASES xxxvii
Chapter 1. Introduction 1(12)
A. History of Business Corporations in the United States
2(3)
1. English Antecedents
2(1)
2. Development of U.S. Corporate Law
3(1)
3. Federal Regulation of Corporations
4(1)
B. Corporate Governance in the Modern Corporation
5(4)
C. Architecture of This Casebook
9(4)
1. Accountability in the Modern Corporation
9(1)
2. Components of the Modern Corporation
10(3)
Chapter 2. Introduction to the Economics of the Firm 13(17)
A. Business Risks
15(4)
1. Non-Controllable Risks
16(1)
2. Risk Preference
17(1)
3. Controllable Risks
18(1)
B. Allocating Business Risks Within the Firm
19(7)
1. Allocating Risks to the Principal
19(2)
2. Allocating Risks to the Agent
21(2)
3. Searching for a Middle Ground
23(3)
C. The Role of Law in Allocating Business Risks
26(4)
1. Mandatory and Default Rules
26(1)
2. Types of Default Rules
27(3)
Chapter 3. An Introduction to the Law of Corporations 30(37)
A. Some Basic Terms and Concepts
30(18)
1. Corporate Statutes
31(1)
2. Judge-Made Corporate Law
31(1)
3. Corporate Choice of Law
32(1)
4. Organic Documents
32(1)
5. The Corporate Actors
33(1)
6. Corporate Securities
33(1)
7. Fiduciary Principles
34(1)
8. Litigation by Shareholders
34(17)
Bayer v. Beran
37(5)
Note: The Business Judgment Rule
42(1)
Note on the Evolution of Fiduciary Duties
42(2)
Gamble v. Queens County Water Co.
44(4)
B. Equitable Limitations Corporate Actions
48(3)
Schnell v. Chris - Craft Industries, Inc.
47(2)
Note: Independent Legal Significance
49(2)
Notes and Questions
51(1)
C. Choice of the State of Incorporation: An Introduction
51(16)
1. The Internal Affairs Doctrine
51(2)
2. The History for History of States' Competition for Corporate Charters
53(8)
Liggett Co. v. Lee
54(3)
Ralph K. Winter Jr., STATE LAW, SHAREHOLDER PROTECTION, AND THE THEORY OF THE CORPORATION
57(4)
3. The Preeminence of Delaware
61(2)
4. The Future Shape of State Corporate Law
63(24)
Ernest L. Folk, III, SOME REFLECTIONS OF A CORPORATION LAW DRAFTSMAN
63(4)
Chapter 4. The Constitution, Federalism and the Corporation. 67(36)
A. Introduction
67(2)
B. The First Amendment
69(1)
Note: Regulation of Political Speech
70(2)
First National Bank of Boston v. Bellotti
72(8)
Austin v. Michigan Chamber of Commerce
80(7)
Note: Bellotti and Austin
87(1)
Note: Financing of Federal Election Campaigns Corporate
87(2)
C. Regulating Corporations' Internal Affairs
89(14)
1. The Internal Affairs Doctrine as a Constitutional Principle
90(2)
2. Antitakeover Statutes: CTS Corp. v. Dynamics Corp. of America
92(2)
CTS Corp. v. Dynamics Corp. of America
94(4)
Note: Developments Following CTS
98(2)
Amanda Acquisition Corp. v. Universal Foods Corp.
100(3)
Chapter 5. The Corporation and Society 103(45)
A. Introduction
103(4)
1. The Berle-Dodd Debate
105(4)
Milton Friedman, CAPITALISM & FREEDOM
106(1)
B. Corporate Social Responsibility Trends
107(18)
1. Judicial Approaches
109(6)
Dodge v. Ford Motor Co.
109(4)
Note: Dodge v. Ford
113(2)
2. ALI Principles of Corporate Governance
115(1)
3. State Constituency Statutes
116(2)
4. The Role of Counsel
118(7)
Hon. Potter Stewart PROFESSIONAL ETHICS FOR THE BUSINESS LAWYER: THE MORALS OF THE MARKETPLACE
118(1)
Richard W. Painter, THE MORAL OF INTERDEPENDENCE OF CORPORATE LAWYERS AND THEIR CLIENTS
119(4)
American Bar Association, Model Rules of Professional Conduct (2002)
123(2)
C. Corporate Charitable Contributions and Social Responsibility
125(23)
Theodora Holding Corp. v. Henderson
125(3)
Kahn v. Sullivan
128(8)
Note: Kahn v. Sullivan
136(1)
Victor Brudney & Allen Ferrell, CORPORATE CHARITABLE GIVING
137(6)
Note: Corporate Charitable Contributions
143(5)
Chapter 6. The Choice of Organizational Form 148(21)
A. Introduction
150(2)
B. Non-Tax Aspects
152(6)
1. Formation
152(1)
2. Limited Liability
153(1)
3. Management and Control
154(1)
4. Continuity of Existence
155(1)
5. Transferability of Interests
156(2)
6. Financing Matters
158(1)
C. Planning Considerations
158(5)
1. Balancing Ownership Interests
158(2)
2. The Economics of the Choice
160(3)
Richard A. Posner, ECONOMIC ANALYSIS OF LAW
161(2)
D. The Tax Consequences of the Choice: A Brief Examination
163(6)
1. Partnership vs. Corporation
163(4)
2. S Corporations
167(4)
a. Operation of an S Corporation
167(1)
b. Termination of a Subchapter S Election
167(2)
Chapter 7. Forming the Corporation 169(26)
A. Lawyers' Professional Responsibilities: Who Is the Client?
169(18)
American Bar Association Model Rules of Professional Conduct (2002)
171(14)
1. Entity Theory of Representation
177(6)
Jesse By Reinecke v. Danforth
177(4)
State Bar of Arizona, Opinion No. 02-06
181(2)
2. The Reasonable Expectations Test
183(2)
Geoffrey C. Hazard, Jr., ETHICS IN THE PRACTICE OF LAW
185(2)
B. The Process of Incorporation
187(3)
Note: Choice of the State of Incorporation
189(1)
C. Ultra Vires
190(1)
D. Defective Incorporation
190(1)
E. Pre-Incorporation Activities of Promoters
191(4)
Chapter 8. An Introduction to Financial Accounting and Valuation 195(42)
A. Financial Accounting Demystified
199(19)
1. Introduction to Accounting Principles
202(2)
2. The Fundamental Equation
204(3)
3. Financial Statement Terms and Concepts
207(7)
a. How Different Financial Statements Relate
207(1)
b. Balance Sheet Terms and Concepts
208(6)
4. Introduction to Financial Analysis
214(4)
a. Liquidity Analysis
214(1)
b. Debt Coverage Analysis
215(1)
c. Equity Analysis
215(2)
d. Cash Flow Analysis
217(1)
B. Valuing the Enterprise
218(19)
l. The Old Man and the Tree: A Parable of Valuation
218(7)
2. Thoughts on Valuing a Business
225(7)
a. Context Matters
225(13)
b. Beware of Buying
238(89)
c. Valuable Thoughts From Chairman Warren
327
3. Irrational Exuberance
232(7)
Robert J. Shiller, IRRATIONAL EXUBERANCE
232(5)
Chapter 9. Financial Structure of the Corporation 237(58)
A. Corporate Securities
239(18)
1. Introduction
239(1)
2. Equity Securities
240(104)
a. Common Stock
240(2)
b. Preferred Stock
242(102)
3. Debt Securities
344
4. Designing a Corporation's Capital Structure
246(12)
a. In General
246(1)
b. Tax Considerations
246(1)
c. Leverage and the Allocation of Risk
247(102)
Equity-Linked Investors, L.P. v. Adams
349
d. Other Risks of Excessive Debt
251(1)
i. Tax Risks
251(3)
ii. Bankruptcy Risks
254(3)
B. Authorization and Issuance of Equity Securities
257(4)
1. The Significance of Authorizing Stock
258(1)
Note: Blank Check Preferred Stock and Poison Pill
258(1)
2. Preemptive Rights and Other Duties in the Issuance of Shares
259(2)
C. Regulation of Legal Capital
261(17)
1. A Concise History of Legal Capital and Par Value
263(25)
Bayless Manning with James J. Hanks, Jr., LEGAL CAPITAL
288
2. The Issuance of Stock and Stockholders' Liability
287
a. Legal Capital Under a Traditional Regime
267(2)
b. Legal Capital Under the Revised Model Act
269(2)
3. Dividends and Other Distributions
271(7)
a. The Rationale for Distributions to Share-holders Regulating
272(1)
b. The Traditional Approach to Regulating Distributions to Shareholders
272(1)
Klang v. Smith's Food & Drug Centers, Inc.
273(5)
c. Protection Against Excessive Distributions Under the Model Act
278
d. Stock Dividends
277(1)
e. Liability for Unlawful Distribution
277(1)
D. Corporate Dividend Policy: Legal and Economic Issues
278(17)
1. Close Corporations
278(1)
Dodge v.Ford Motor Co.
278(2)
Note: Dividend Decisions in Close Corporations
280(4)
2. Public Corporations
284(1)
Kamin v. American Express Co
284(1)
Note: Accounting Versus Economic Results
285(3)
Warren Buffett, LETTER TO SHAREHOLDERS, BERKSHIRE HATHAWAY INC.
288(1)
Note: Financing Choices
288(2)
Michael Jensen, ECLIPSE OF THE PUBLIC CORPORATION
290(3)
James Surowiecki, THE TAMING OF THE BARBARIANS: HOW A RAPACIOUS LEVERAGED-BUYOUT FIRM BECAME A POSITIVE FORCE IN THE CORPORATE ECONOMY
293(2)
Chapter 10. The Regulation of Securities Issuance 295(23)
A. Federal Regulation of Securities Offerings
297(19)
1. Overview of the 1933 Act
297(1)
Securities and Exchange Commission, THE LAWS THAT GOVERN THE SECURITIES INDUSTRY
297(1)
2. The Registration Process
298(1)
Securities and Exchange Commission, Exchange Q & A: SMALL BUSINESS AND THE SEC
298(2)
Carl W. Schneider, Joseph M. Manko & Robert S. Kant, GOING PUBLIC-PRACTICE, PROCEDURES AND CONSEQUENCES
300(1)
3. Exemptions From Registration
301(7)
a. Intrastate Offering Exemption
301(1)
b. Private Placement Exemption
302(1)
Doran v. Petroleum Management Corp
302(4)
c. Regulation D Offerings
306(2)
d. Regulation A Offerings
308(1)
e. Fraud Liability in Exempt Offerings
308(1)
4. Definition of "Security"
308(1)
Securities and Commission v. SG Ltd.
309(7)
B. State Blue Sky Laws
316(2)
Chapter 11. Protection of Creditors: Limitations on Limited Liability 318(48)
A. Overview
318(11)
1. Doctrinal Confusion
318(1)
Franklin A. Gevurtz, Piercing Piercing: AN ATTEMPT TO LIFT THE VEIL OF CONFUSION SURROUNDING THE DOCTRINE OF PIERCING THE CORPORATE VEIL
319(2)
2. Should the Setting Control When the Veil Is Pierced?
321(1)
Frank H. Easterbrook and Daniel R. Fischel, THE ECONOMIC STRUCTURE OF CORPORATE LAW
322(3)
Richard A. Posner, AN ECONOMIC ANALYSIS OF LAW
325(2)
3. Tort vs. Contract Creditors
327(2)
B. Tort Creditors
329(12)
Walkovszky v. Carlton
329(6)
Radaszewski v. Telecom Corp.
335(4)
Note: Piercing to Benefit Tort Creditors
339(2)
C. Contract Creditors
341(11)
Freeman v. Complex Computing Co., Inc
341(7)
Kinney Shoe Corp. v. Polan
348(3)
Note: Piercing to Benefit Contract Creditors
351(1)
D. Parent-Subsidiary Corporations
352(8)
Gardemal v. Westin Hotel Co.
353(3)
Note: Texas Piercing Law
356(1)
OTR Associates v. IBC Services, Inc.
357(3)
E. Piercing the Veil of Other Limited Liability Entities
360(1)
F. Alternatives to Limited Liability
361(5)
1. Imposing Shareholder Liability Under Federal Law
361(2)
2. Fraudulent Conveyance and Equitable Subordination Concepts
363(3)
Chapter 12. Actions Binding the Corporation 366(26)
A. Delegation of Board to Corporate Executives
367(13)
1. Introduction: Some Basic Agency Concepts
367(2)
2. Agency In Corporations: The Authority of Officers
369(4)
Menard, Inc. v. Dage-MTI, Inc.
373(5)
3. Ascertaining Corporate Authority
378(2)
B. Formalities of Board Action
380(6)
1. Board Action at a Meeting
381(3)
2. Notice and Quorum
384(1)
3. Committees of the Board
385(1)
C. Third-Party Legal Opinions
386(6)
Report of the Legal Opinion Committee of the Business Law Section of the North Carolina Bar Association
388(1)
Thomas L. Ambro & J. Truman Bidwell, Jr., RETHINKING LEGAL OPINION LETTERS: SOME THOUGHTS ON THE ECONOMICS OF LEGAL OPINIONS
389(3)
Chapter 13. Governance Role of Shareholders 392(64)
A. Basics of Shareholder Voting
393(4)
Note: Financing of Shareholder Voting
394(3)
B. Shareholder Veto and Exit Rights in Fundamental Transactions
397(26)
1. Shareholder Rights in Fundamental Transactions
399(1)
2. The Mechanics of Corporate Combinations
400(1)
Note: Statutory Variations
401(8)
a. Statutory Merger
403(2)
b. Triangular Merger
405(3)
c. Exchange of Shares
408
d. Purchase of Assets
407(1)
e. Tender Offers
408(1)
f. Summary
408(1)
3. De Facto Merger Doctrine
409(2)
Hariton v. Arco Electronics, Inc.
411(3)
Note: De Facto Merger Approaches
414(3)
Sale of "Substantially All" Assets
417(2)
Gimbel v. Signal Companies, Inc.
419(3)
Note: Board Power to Structure Fundamental Transactions
422(1)
C. Shareholders' Power to Initiate Action
423(24)
1. Procedures for Shareholder Meetings
424(2)
a. Calling the Meeting
425(1)
b. Notice
425(1)
c. Quorum
425(1)
d. Action by Written Consent
426(1)
2. What Actions Can Shareholders Initiate?
426(1)
a. Shareholder Recommendations
426(1)
Auer v. Dressel
426(3)
b. Amendment of Bylaws
429(1)
International Brotherhood of Teamsters General Fund v. Fleming Cos
429(2)
Note: Vidality of Bylaw Amendments Under Delaware Law
431(2)
c. Removal and Replacement of Directors
433(1)
Campbell v. Loew's, Inc
433
3. Board Responses to Shareholder Initiatives
427(10)
Blasius Industries, Inc. v. Atlas Corp.
437(11)
Quickturn Design Systems, Inc. v. Shapiro
448
D. Shareholders' Right of Inspection
447(9)
1. Proper Purpose
448(1)
State Ex Rel. Pillsbury v. Honeywell, Inc.
449(3)
2. What Comprises a "Stockholder List"?
452(4)
Chapter 14. The Role of the Shareholder in the Governance of the Public Corporation 456(57)
A. Theories of the Firm
457(11)
1. The Berle-Means Corporation
457(2)
2. The Contractarian Theory of the Corporation
459(3)
3. Beyond Contractarian Theory
462(1)
Mark J. Roe, CHAOS AND EVOLUTION IN LAW AND ECONOMICS
463(2)
4. Shareholder Primacy
465(3)
B. The Dynamics of Shareholder Voting
468(12)
1. Introduction
471(7)
2. How the Proxy Process Works: Law and Practice
478
a. The Annual Meeting
473(1)
b. Shareholder Voting
473(1)
c. Filing Proxy Material
474(1)
d. Identifying the Shareholders: Street Names
474(1)
e. Control of the Machinery
475(1)
f. Counting the Proxies
475(1)
3. The Collective Action Problem
476(1)
Robert Charles Clark, CORPORATE LAW (1986)
477(3)
C. Federal Regulation of Proxy Solicitations
480(7)
1. The Proxy Rules as They Apply to Management 481
2. Communications Reasonably Calculated to Procure A Proxy
482(2)
Long Island Lighting Company v. Barbash
484(4)
3. Solicitations by Shareholders and Others
488(7)
a. Exempt Solicitations
488
b. Shareholder of Voting Decisions Announcements
487(1)
c. Regulated Solicitations
487(1)
D. Institutional Investors
487(6)
E. Shareholder Proposal
493(20)
1. Evolution of the Shareholder Proposal Rule
495(1)
2. The Rule in Operation
496(31)
a. The Interpretative Process
497(1)
b. Substantive Grounds for Omission
498(2)
Lovenheim v. Iroquois Brands, Ltd.
500(2)
Note: Ordinary Business, Public Policy and Management Accountability
502(3)
Note: Measuring the Success of Shareholder Proposals
505(4)
Note: The Cracker Barrel Story
509(1)
Historic Cracker Barrel Vote Prompts New Policy
509(4)
Chapter 15. Disclosure Duties to Shareholders 513(62)
A. Implied Federal Private Action for Proxy Fraud
515(8)
J.I. Case Co. v. Borak
517(4)
Note: Implied Private Rights of Action
521(2)
B. Materiality in Federal Proxy Fraud Action
523(6)
TSC Industries,Inc. Northway, Inc.
523(4)
Note: Materiality Under Federal Law
527(2)
C. Reliance and Causation in Federal Proxy Fraud Action
529(24)
1. "Essential Link" in the Transaction
529(1)
Mills v. Electric Auto-Lite Co.
529(6)
Note: Damages and Attorney Fees
535(1)
2. Causation When Solicitation Not Required
536(1)
Virginia Bankshares, Inc. v. Sandberg
536(11)
Note: Impact of Virginia Bankshares
547(2)
3. Lost State Remedies
549(1)
Wilson v. Great American Industries, Inc.
549(4)
D. Culpability in Federal Proxy Fraud Action
553(1)
E. Constructive Fraud: Unfairness as Deceit
554(8)
Santa Fe Industries, Inc. v. Green
555(5)
Note: Unfairness as "Fraud on the Corporation"
560(2)
F. State Law Duties of Disclosure
562(13)
1. Duty of Disclosure When Corporate Fiduciaries Seek Shareholder Action
563(2)
2. Duty of Disclosure When Corporation Communicates to Shareholders
565(1)
Malone v. Brincat
565(6)
Note: Implications of Malone v. Brincat
571(1)
3. Materiality Under State Disclosure Duty
571(2)
4. "Voluntary" Disclosures and State Remedies
573(2)
Chapter 16. Outside Directors' Role in the Public Corporation 575(32)
A. Introduction
576(2)
B. How Boards of Directors Operate
578(2)
C. Key Board Committees
580(5)
1. The Audit Committee
581(2)
2. The Compensation Committee
583(1)
3. The Nominating Committee
584(1)
D. Do Independent Directors Matter?
585(22)
1. Who the Outside Directors Are
585(1)
2. How "Independent" Is Defined
586(1)
3. Do Boards Dominated by Independent Directors Enhance Corporate Performance?
587(1)
Laura Lin, THE EFFECTIVENESS OF OUTSIDE DIRECTORS AS A CORPORATE GOVERNANCE MECHANISM: THEORIES AND EVIDENCE
587(3)
4. Concerns Precipitated By The "Fall of Enron"
590(1)
William W. Bratton, ENRON AND THE DARK SIDE OF SHAREHOLDER VALUE
591(22)
a. Objective vs. Subjective Independence
592(2)
Michael J. Halloran, THE BOARD OF DIRECTORS IN THE POST-ENRON ERA
594(3)
b. When Should Courts Defer to "Independent" Directors' Judgments?
597(1)
Leo E. String, Jr., DERIVATIVE IMPACT? SOME EARLY REFLECTIONS ON THE CORPORATION LAW IMPLICATIONS OF THE ENRON DEBACLE
598(9)
Chapter 17. The Duty of Care of Corporate Directors 607(111)
A. Standards of Care
608(4)
B. Duty of Oversight
612(26)
1. Supervision of Ongoing Business
613(1)
Francis v. United Jersey Bank
613(5)
Note: A Unitary Standard of Oversight?
618(2)
2. Monitoring of Legal Compliance
620(3)
In Re Caremark International Inc. Derivative Litigation
623(7)
Note: Duty of Inquiry After Caremark
630(3)
Note: Internal Controls Under Sarbanes-Oxley
633(2)
3. Director's Criminal Liability
635(3)
C. Business Judgment Rule
638(14)
1. Scope of the Business Judgment Rule
638(1)
Shlensky v. Wrigley
638(4)
Note: Corporate Best Interests
642(1)
2. Business Judgment Rule and Directorial Negligence
643(3)
Note: Codification of Business Judgment Rule
646(2)
Note: Business Judgment Rule and Waste
648(1)
3. Business and Judgment Rule and Illegal Conduct
649(1)
Miller v. American Telephone & Telegraph Co.
649(3)
D. Duty to Become Informed
652(35)
1. The Trans Union Case
652(1)
Smith v. Van Gorkom
652(17)
Note: Van Gorkom and Its Aftermath
669(4)
Note: The Board as Individuals or Collective Body
673(1)
2. Due Care and the Business Judgment Rule
674(2)
3. Reliance
676(3)
4. Lack of Objectivity
679(1)
5. Causation
680(5)
6. Rebutting the Presumption of the Business Judgment Rule
685(2)
E. Avoidance of Liability
687(31)
1. Protections Against Directorial Liability
688(2)
2. Statutory Exculpation of Directors
690(2)
James J. Hanks, Jr., EVALUATING RECENT STATE LEGISLATION ON DIRECTOR AND OFFICER LIABILITY LIMITATION AND INDEMNIFICATION
692(1)
Note: Standards and Burdens of Proof in Exculpation Cases
693(5)
3. Indemnification
698(1)
American Bar Association Committee on Corporate Laws, CHANGES IN THE MODEL BUSINESS CORPORATION ACT-AMENDMENTS PERTAINING TO INDEMNIFICATION AND ADVANCE FOR EXPENSES
698(2)
E. Norman Veasey, Jesse A. Finkeistein & C. Stephen Bigler, DELAWARE SUPPORTS DIRECTORS WITH A THREE-LEGGED STOOL OF LIMITED LIABILITY, INDEMNIFICATION AND INSURANCE
700(2)
Waltuch v. Conticommodity Services, Inc.
702(8)
Note: Interpreting Indemnification Statues
710(4)
Note: Charter, By-Law and Contract Indemnification
714(1)
4. Directors' and Officers' Insurance
715(3)
Chapter 18. Duty of Loyalty 718(86)
A. Introduction: On Conflicts of Interest and the Duty of Loyalty
718(4)
B. An Overview of the Issues
Melvin Aron Eisenberg, THE DIVERGENCE OF STANDARDS OF CONDUCT AND STANDARDS OF REVIEW IN CORPORATE LAW
722(5)
C. The Common Law Standard
727(3)
D. Contemporary Statutory Approaches
730(10)
1. Common Law Statutory Analysis
730(1)
Remillard Brick Co. v. Remillard-Dandini Co.
730(3)
Note: Interpreting an Interested Director Statute
733(1)
Note: The Delaware Approach
734(2)
2. MBCA Subchapter F
736(4)
E. Entire Fairness: Fair and Fair Price
740(31)
1. Procedural Fairness (Fair Dealing)
741(19)
a. Who Is an Interested Director
741(1)
Orman v. Culiman
741(10)
In re the Walt Disney Company Derivative Litigation
751(4)
Note: The Attorney as Director
755(2)
Note: Can Directors Be Truly Independent?
757(1)
b. Disclosure
758(2)
2. Substantive Fairness (Fair Price)
760(1)
3. Shareholder Approval
761(1)
Lewis v. Vogelstein
762(4)
Harbor Finance Partners v. Huizenga
766(5)
F. Executive Compensation
771(10)
Note: The American Tobacco Litigation
771(4)
Lewis v. Vogelstein
775(4)
Note: Stock Options
779(2)
G. Corporate Opportunity
781(23)
1. Traditional Corporate Opportunity Doctrine
782(1)
Farber v. Servan Land, Inc
782(6)
2. What Is a Corporate Opportunity Doctrine?
788(7)
a. Interest or Expectancy
788(1)
b. Line of Business
789(2)
Note: A Statutory Approach
791(1)
c. Fairness: Alone or in Combination With Other Standards
792(1)
d. Financial or Economic Capacity
793(2)
3. When May a Corporate Manager Take an Opportunity for Herself?
795(1)
Burg v. Horn
795(2)
4. The Importance of Disclosure
797(1)
ALI Principles of Corporate Governance
797(5)
5. Remedies for Usurping a Corporate Opportunity
802(2)
Chapter 19. Duty of Controlling Shareholders 804(100)
A. Transactions Between the Controlling Shareholder and the Controlled Corporation
807(5)
Sinclair Oil Corp. v. Levien
807(5)
Note: Sinclair v. Levien
812(1)
B. Cash Out Mergers
812(57)
1. Introduction
812(3)
2. The Analytic Framework
815(1)
Weinberger v. UOP, Inc.
816(15)
Note: The Business Purpose Test After Weinberger
831(2)
Note: Exclusivity of Appraisal After Weinberger
833(5)
Note: Short Form Mergers
838(1)
3. Fair Dealing and Fair Price
839(1)
William T. Allen, INDEPENDENT DIRECTORS IN MBO TRANSACTIONS: ARE THEY FACT OR FANTASY?
840(3)
Kahn v. Lynch Communication Sys., Inc.
843(9)
Kahn v. Lynch Communication Sys., Inc.
852(6)
In re Pure Resources, Inc., Shareholders Litigation
858(11)
C. Sale of a Controlling Interest
869(35)
1. Introduction
869(5)
2. Duty of Care
874(1)
Harris v. Carter
874(9)
3. Duty of Loyalty
883(1)
Perlman v. Feldmann
883(4)
Note: Perlman v. Feldmann
887(2)
Jones v. H.F. Ahmanson & Co
889(7)
4. Sale of Office
896(1)
Essex Universal Corp. v. Yates
896(6)
Note: Selling Corporate Office
902(2)
Chapter 20. Shareholder Litigation 904(68)
A. Introduction
904(8)
B. Direct and Derivative Actions
912(5)
Note: Features of Shareholder Litigation
916(1)
C. Who Qualifies as a Plaintiff?
917(9)
1. Adequacy
917(1)
In Re Fuqua Industries, Inc. Shareholder Litigation
918(3)
2. Standing
921(3)
a. Contemporaneous Ownership
921(1)
b. Continuing Interest
922(1)
c. Security Ownership
923(1)
3. Choosing Lead Plaintiff/Lead Counsel
924(2)
D. Internal Corporate Procedures
926(34)
1. The Traditional (Delaware) Approach
926(27)
a. Demand
926(1)
Aronson v. Lewis
927(8)
Post-Aronson Developments
935(5)
b. Termination Where Demand Is Excused
940(1)
Zapata Corp. v. Maldonado
940(7)
Note: Special Litigation Committees
947(6)
2. The MBCA and ALI Approaches
953(2)
Einhorn v. Culea
955(5)
E. Settlement and Attorneys' Fees
960(12)
1. Introduction
960(1)
2. Judicial Review of Settlements
961(5)
3. Attorneys' Fees
966(6)
Chapter 21. Regulation of Securities Trading 972(125)
A. Securities Trading: Markets and Theory
972(17)
1. Overview of Securities Trading
972(2)
2. Information and Securities Markets
974(15)
3. Economic Theory: Insider Trading and Corporate Disclosure
B. Insider Trading: State Corporate Law
989(16)
1. Duty to Shareholders and Investors
989(1)
Goodwin v. Agassiz
989(3)
Note: Common Law of Insider Trading
992(1)
Note: Common Law of Deceit
993(1)
2. Duty to the Corporation
994(1)
Diamond v. Oreamuno
994(5)
Freeman v. Decio
999(5)
Note: Current Status of State Law on Insider Trading
1004(1)
C. Insider Trading: Rule 10b-5
1005(59)
1. Early History
1005(3)
2. Scope of Rule 10b-5
1008(1)
Securities and Exchange Commission v. Texas Gulf Sulphur Co.
1008(18)
3. Duty to "Disclose or Abstain"
1026(1)
Chiarella v. United States
1026(6)
4. Tipping Liability (or when 15% Is Not Enough)
1032(1)
Dirks v. Securities and Exchange Commission
1033(11)
5. Misappropriation Liability
1044(1)
United States v. O'Hagan
1045(10)
Note: Life After Chiarella, Dirks and O'Hagan
1055(6)
Securities and Exchange Commission, SELECTIVE DISCLOSURE AND INSIDER TRADING
1061(2)
Note: Remedies for Insider Trading Violations
1063(1)
D. Disclosure Duties of Corporations: Rule 10b-5
1064(27)
1. Duty to Disclose
1064(1)
Alan R. Palmiter, CORPORATIONS: EXAMPLES AND EXPLANATIONS
1064(2)
New York Stock Exchange Listed Company Manual SECTION 2: DISCLOSURE AND REPORTING MATERIAL INFORMATION
1066(2)
State Teachers Retirement Board v. Fluor Corp.
1068(2)
2. Materiality
1070(1)
Basic Inc. v. Levinson
1070(7)
Note: Forward-Looking Information
1077(3)
3. Elements of Securities Fraud Under Rule 10b-5
1080(13)
a. Standing
1082(1)
b. Scienter
1083(3)
c. Reliance and Causation
1086(1)
Basic, Inc. v. Levinson
1087(4)
Note: Federalization of Corporate Governance?
1091(1)
E. Disgorgement Liability: Section 16
1091(6)
Note: Interpretative Questions Under Section 16
1093(4)
Chapter 22. Protecting and Selling Control 1097(99)
A. Introduction
1097(1)
B. The Regulatory Framework
1098(9)
1. Federal Regulation
1098(4)
a. Proxy Contests
1098(1)
b. Tender Offers
1099(3)
2. State Regulation
1102(5)
C. Case Law Developments
1107(70)
1. The Delaware Courts' Approach
1109(63)
a. The Analytic Framework: From Unocal to Time
1110(7)
b. The Contemporary Framework
1117(1)
Paramount Communications Inc. v. QVC Network Inc.
1117(15)
Unitrin, Inc. v. American General Corp
1132(10)
c. Post-Unitrin Developments
1142(1)
Chesapeake Corporation v. Shore
1143(8)
Note: Reconciling Blasius With Unocal and Unitrin
1151(1)
MM Companies, Inc. v. Liquid Audio, Inc.
1152(5)
Omnicare, Inc. v. NCS Healthcare, Inc.
1157(13)
Note: Directors' Duties in a Sale of Control
1170(2)
2. Other States' Approaches
1172(5)
D. The Policy Debate
1177(19)
Michael L. Wachter, TAKEOVER DEFENSE WHEN FINANCIAL MARKETS ARE (ONLY) RELATIVELY EFFICIENT
1177(6)
Andrei Shleifer & Robert Vishny, STOCK MARKET DRIVEN ACQUISITIONS
1183(13)
Chapter 23. Closely Held Corporations 1196
A. Close Corporation Dilemma
1196(6)
Note: Close Corporation as Incorporated Partnership
B. Realignments of Shareholder Control
1. Cumulative Voting
1202(6)
2. Class
1208
3. Shareholder Voting Arrangements
1204(3)
J. G. Deutsch, THE TEACHING OF CORPORATE LAW: A SOCRATIC INVESTIGATION OF LAW AND BUREAUCRACY
1207(6)
C. Restrictions on Board Discretion
1213(18)
1. Shareholder Agreements
1214(4)
Triggs v. Triggs
1218(6)
Note: Statutory Authorization of Restraints on Board Discretion Statutory Authorization
1224(2)
2. High Voting Requirements
1226(1)
3. Fiduciary Duties in Exercising Veto Rights
1227(1)
Smith v. Atlantic Properties,Inc.
1228(3)
D. Contractual Transfer Provisions
1231(12)
1. Purposes and Legality of Transfer Provisions
1232(1)
2. Types of Transfer Provisions
1233(4)
3. Valuation of Restricted Shares
4. Judicial Interpretation of Transfer Provisions
1237(1)
Concord Auto Auction, Inc. v. Rustin
1237(5)
Note: Strict Interpretation of Transfer Provisions
1242(1)
E. Oppression: Liquidity Rights and Dispute Resolution
1243(42)
1. Dissension and Oppression in the Close Corporation
1244(3)
2. Fiduciary Protection of Minority Interests
1247(1)
Wilkes v. Springside Nursing Home, Inc.
1247(5)
Note: Equality Versus Majority Control
1252(3)
Nixon v. Blackwell
1255(3)
Note: Contractual Approaches to Oppression
1258(1)
Note: Tort Approach to Oppression
1258(1)
Note: Choice of Law in Close
1259(1)
3. Statutory Remedies for Oppression
1260(2)
Matter of Kemp & Beatley, Inc.
1262(5)
Note: Oppression of Shareholder-Employee
1267(1)
Bonavita v. Corbo
1267(7)
Notes: Perspectives on Oppression
1274(5)
Note:Non-Dissolution Remedies in Oppression Cases
1279(6)
INDEX
1285

Rewards Program

Reviews for Corporations: Law and Policy, Materials and Problems (9780314259660)