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Rethinking Contractual Limits On Fiduciary Duties, Christina M. Sautter

Journal Articles

The recent financial crisis has placed a renewed focus on completion risk in the world of mergers and acquisitions. Dealmakers have increasingly attempted to control for such risks by altering merger agreement provisions to achieve a greater level of deal certainty. This Article addresses one such provision – the merger recommendation covenant and its related fiduciary out. The purpose of the merger recommendation fiduciary out is to address a tension created by two fundamental precepts arising under corporate law and contract law – a board of director’s duties to the corporation and its stockholders versus the binding covenants of a …