The Importance of Boardroom Influence in Finding Control

, Delaware Business Court Insider


Labels matter. Under Delaware law, few labels are more consequential than that of "controlling stockholder." Controllers, unlike other stockholders, owe fiduciary duties to their fellow stockholders, and—as the decisions in In re John Q. Hammons Hotels Shareholder Litigation,C.A. No. 758-CC (Del. Ch. Oct. 2, 2009), and, more recently, Southeastern Pennsylvania Transportation Authority v. Volgenau, C.A. No. 6354-VCN (Del. Ch. Apr. 5, 2013), showed—their presence in even a third-party transaction can affect the standard of review applied to such a transaction.

What's being said

Comments are not moderated. To report offensive comments, click here.

Preparing comment abuse report for Article# 1202645523234

Thank you!

This article's comments will be reviewed.