Concern about their fiduciary responsibility to shareholders and shareholder lawsuits often puts pressure on a target firm's board of directors to accept an offer if it includes a significant premium to the target's current share price.

Question

Quizplus · Accepted Answer

This statement is true as the board of directors are responsible for maximizing shareholder value and may face legal action if they reject a good offer.

Concern About Their Fiduciary Responsibility to Shareholders and Shareholder Lawsuits