Following Smith v. Van Gorkom:
A) Targets must immediately announce all overtures from potential bidders
B) Directors are more likely to seek outside fairness opinions
C) We have seen more use of debt financing
D) None of the above

Question

Quizplus · Accepted Answer

Following Smith v. Van Gorkom, directors are more likely to seek outside fairness opinions to ensure they meet their fiduciary duties by adequately evaluating the fairness of a transaction, thus avoiding potential legal liabilities for making uninformed decisions.

Following Smith V. Van Gorkom