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Conflicted Transactions

Learn about transactions presenting conflicts of interest and the entire fairness test applied when directors are operating under conflicts.

Transcript

Conflicts of interest can arise in M&A transactions when members of the company’s board of directors or management have personal interests that differ from the interests of the shareholders they’re supposed to represent. These conflicts can lead to decisions that aren’t in the best interests of the shareholders.

I. Entire-Fairness Standard

Before we look at some specific types of conflicted transactions, let’s start our discussion by considering the judicial standard of review applicable to...