When purchasers are willing to pay a premium for a block of shares that conveys control,almost all courts today require the controlling shareholders to turn over this control premium to the corporation's treasury.

Question

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Courts generally do not require controlling shareholders to turn over the control premium to the corporation's treasury. The control premium is typically considered a personal benefit to the selling shareholder for selling their controlling interest, rather than an asset of the corporation itself.

When Purchasers Are Willing to Pay a Premium for a Block