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The Discretion Of Judges And Corporate Executives: An Insider’S View Of The Disney Case, John J. Donohue
The Discretion Of Judges And Corporate Executives: An Insider’S View Of The Disney Case, John J. Donohue
John Donohue
The widely publicized Disney case is perhaps the most important corporate law litigation in many decades. The case illustrates the immense discretion in the hands of trial judges in Delaware Chancery Court to let their passive corporate law ideology determine the outcome even in cases of egregious management neglect. Unfortunately, as managers, not shareholders, are the ones who decide where to incorporate and Delaware—the state of choice—depends on incorporation revenues to feed its coffers, too often this discretion is exercised to protect management at shareholder expense.
Disney Had Good Reason To Fire Ovitz, John Donohue
Disney Had Good Reason To Fire Ovitz, John Donohue
John Donohue
GEORGETOWN, Del., Oct 21 (Reuters) - Walt Disney Co. (DIS.N) should have fired Michael Ovitz rather than paying him $140 million in severance, a legal expert testified on Thursday in support of shareholders suing the Disney board. Shareholders are demanding that the severance and interest - a sum that could total about $200 million - be returned to the company, claiming that the board was asleep at the wheel when they approved the deal and that Ovitz failed miserably in his 14 months as president. In the second day of a trial that is being closely watched in corporate boardrooms, …