RayCorp offers to buy out MegaCorp by paying $69 per share.LandCo,who also wants to buy MegaCorp,offers to pay $75 per share.When the bidding process is finally over,RayCorp has offered $85 per share and LandCo has offered to pay $90 per share.MegaCorp agrees to sell to RayCorp on grounds that,all things considered,the takeover by RayCorp would be better for the business.LandCo claims that MegaCorp should have sold the company to it since it was the highest bidder.Is LandCo correct?
A) Yes. This is a breach of duty. MegaCorp must sell the company to the highest bidder; it cannot give preferential treatment to a lower bidder.
B) No. This is covered by the Williams Act.
C) No. The directors have broad discretion in deciding to whom to sell the company.
D) None of the above.
Correct Answer:
Verified
Q22: Which of the following is NOT a
Q23: Amy is on the board of directors
Q24: For the business judgment rule to apply:
A)
Q25: The Williams Act:
A) is designed to regulate
Q26: Which of the following statements is correct
Q29: The Model Business Corporation Act states: "All
Q29: Which of the following is the most
Q30: On the day a tender offer begins,
A)greenmail
Q31: The term "corporate manager" refers to:
A) directors.
B)
Q32: The Lippman v.Shaffer case held that:
A) the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents