Another Strong Statement Regarding Director Liability

Law360, New York (November 5, 2008, 12:00 AM EST) -- The Delaware Courts have made another strong statement this year in regards to potential director liability.

While earlier this year, Delaware took a stance regarding advancement of indemnification for former directors in Schoon v. Troy, the Chancery Court recently denied summary judgment to a group of independent directors due to a limited record of the board’s process in evaluating an acquisition offer.

In doing so, the Court found that independent directors, acting without conflict, could potentially be personally liable for approving a premium cash offer, with...
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