Board of directors violated their fiduciary duties of care

Assignment Help Operation Management

Reference no: EM131269794

Fiduciary Duties Jimmy is the CEO of News Corp. His son, Johnny, runs Television Inc. One day Jimmy suggests that Johnny sell Television Inc. to News Corp. Jimmy and Johnny work together to radically inflate the value of Television Inc. Jimmy brings a proposal to the Board of Directors to buy Television Inc. for $500 million dollars even though the corporation is only worth $2 million. The board of directors diligently examines the transaction, but due to clever forgeries, the board does not discover the radical inflation of the corporation. Jimmy never discloses his relationship with Johnny. The sale goes through, and it is shortly discovered that Television Inc., is practically worthless. A shareholder sues alleging that Jimmy violated his fiduciary duty of loyalty. Additionally, the shareholder claims that the board of directors violated their fiduciary duties of care. Is the shareholder correc

Reference no: EM131269794

Questions Cloud

Find the probability that a household chosen at random : What is the probability that a household will use more than 400 gallons of water per day?- Find the probability that a household chosen at random will use at most 400 gallons of water per day.

Examine the long-term and organizational factors : Examine the long-term and organizational factors and issues mentioned above. How do these factors impact the enduring, widespread success of a project in the health care setting?

Assignment builds on the assignment : This assignment builds on the assignment you have completed in Unit 3 (IP 1A). You will build on the work that you have already done to complete sections IV, V, and VI in this assignment. Once finished, you will compile your work from Unit 3 & 4 i..

What is encapsulation in object-oriented databases : What is an abstract data type (ADT)? What is the significance of a database system that is capable of creating ADTs?

Board of directors violated their fiduciary duties of care : Fiduciary Duties Jimmy is the CEO of News Corp. His son, Johnny, runs Television Inc. One day Jimmy suggests that Johnny sell Television Inc. to News Corp. Jimmy and Johnny work together to radically inflate the value of Television Inc. Additionally,..

What roles do nursing homes play in providing rehabilitation : What roles do nursing homes play in providing rehabilitation and extended care for functionally disabled persons? 2. Under what circumstances is it appropriate to consider nursing home placement for an elderly parent or guardian? Is placement in assi..

Describe three deficiencies in the relational database model : Describe the advanced relationship known as ‘‘generalization.'' What are its benefits?

Find the total income produced by a continuous income stream : Find the total income produced by a continuous income stream in the first 5 years if the rate of flow is f(t)= 2,500.

Identify the common elements of most project closeouts : An assessment of best practices for preparing for a closeout. Explain what you believe to be the most important component of closing out a project. Describe strategies for obtaining meaningful feedback from all stakeholders. Justify your response us..

User Account

All Pages