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Corporate Auctions And Directors' Fiduciary Duties: A Third-Generation Business Judgment Rule, Steven G. Bradbury
Corporate Auctions And Directors' Fiduciary Duties: A Third-Generation Business Judgment Rule, Steven G. Bradbury
Michigan Law Review
This Note proposes a rationale and a methodology for applying the business judgment rule when directors resist a hostile bid during the auction phase of a control contest. Part I examines the changes that occur in the responsibilities of target directors when a corporate auction is initiated. This Part describes the Unocal business judgment rule test and discusses its usefulness in the auction phase of a takeover. While the test requires modification if it is to complement effectively the auction-phase duties announced in Revlon, this Part suggests that the business judgment rule continues to be relevant and important during …
Territoriality And The Perils Of Formalism, Mark P. Gergen
Territoriality And The Perils Of Formalism, Mark P. Gergen
Michigan Law Review
Recently in this journal Donald Regan published a pair of essays on CTS Corp. v. Dynamics Corp. of America. Much of the first essay elaborates his theory that what the Supreme Court should be doing and what it is doing under the dormant commerce clause is checking state laws adopted with a substantial protectionist purpose. The rest of the first essay and all of the second essay develop a different check on state lawmaking power in interstate affairs: a rule that states may not regulate conduct beyond their borders. He calls this the extraterritoriality principle. Elsewhere I have questioned …
The Promise Of State Takeover Statutes, Richard A. Booth
The Promise Of State Takeover Statutes, Richard A. Booth
Michigan Law Review
The purpose of this article is, first, to describe the problems associated with two-tier tender offers and the closely related, and perhaps still more coercive, partial tender offer. Second, the article will address the natural question why such offers have not already been banned, suggesting a better view of what coercion means in the context of a tender offer. Third, the article will offer a management-oriented view of coercion, explaining the legitimate interests of managers (and other groups) in resisting takeovers, as well as how greenmail and poison pills, though subject to abuse, can be used quite properly to combat …
Plebiscites, Participation, And Collective Action In Local Government Law, Clayton P. Gillette
Plebiscites, Participation, And Collective Action In Local Government Law, Clayton P. Gillette
Michigan Law Review
Participation is again in the air. Apparently fueled by current debates concerning decentralized power and republican versus pluralist traditions in our political and legal theory, those concerned with political decisionmaking have turned their attention to calls for increased public involvement in the process. As has been true in the past, the objectives of those who advocate increased participation are by no means uniform. Some stress the positive effects that broad participation would have on individual participants. The primary function of participation in these accounts lies in its educative value, its capacity to produce a more informed, hence more self-sufficient, citizenry. …