For Your Data Kahn V. Tremont Corp. Example Brief
May 12, 2016
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Kahn v. Tremont Corp. case brief summary
694 A.2d 422 (1997)
CASE FACTS
Defendants, enterprise in addition to board of directors, purchased shares of stock from a corporation, which was ninety percentage owned past times a trust for the menage unit of measurement of a board member. Plaintiff shareholder alleged that accused board fellow member effectively controlled the iii related companies and, through his influence, structured the buy inward a mode which benefited himself.
DISCUSSION
CONCLUSION
The courtroom reversed in addition to remanded the Court of Chancery's conclusion blessing defendants, enterprise in addition to board of directors', buy of stock because the particular commission established to negotiate the buy did non business office independently and, therefore, the burden shift to plaintiff shareholder was inappropriate.
Recommended Supplements for Corporations in addition to Business Associations Law
694 A.2d 422 (1997)
CASE SYNOPSIS
Plaintiff shareholder sought review of a conclusion of the Court of Chancery of the State of Delaware inward in addition to for New Castle County, which approved the buy past times defendants, enterprise in addition to board of directors, of shares of stock.CASE FACTS
Defendants, enterprise in addition to board of directors, purchased shares of stock from a corporation, which was ninety percentage owned past times a trust for the menage unit of measurement of a board member. Plaintiff shareholder alleged that accused board fellow member effectively controlled the iii related companies and, through his influence, structured the buy inward a mode which benefited himself.
DISCUSSION
- The courtroom rejected the Court of Chancery's determination that accused corporation's particular commission established to negotiate the buy of stock functioned independently.
- The courtroom stated that all iii members of the commission had previous affiliations amongst accused board fellow member or companies that he controlled and, equally a result, received pregnant fiscal compensation or influential positions on fellowship boards.
- The courtroom concluded that the particular commission did non operate inward a mode that entitled defendants to shift from themselves the burden that encumbers a controlled transaction.
- The courtroom reversed the Court of Chancery's conclusion in addition to remanded the representative for an entire fairness determination amongst the burden of sentiment on defendants.
CONCLUSION
The courtroom reversed in addition to remanded the Court of Chancery's conclusion blessing defendants, enterprise in addition to board of directors', buy of stock because the particular commission established to negotiate the buy did non business office independently and, therefore, the burden shift to plaintiff shareholder was inappropriate.
Recommended Supplements for Corporations in addition to Business Associations Law