Controlling Shareholder Transactions
Learn about transactions involving controlling shareholders, the standards applied, and minority shareholder protections.
Transcript
M&A transactions involving controlling shareholders present unique concerns. Courts strive to balance the rights of controlling shareholders with the board’s duty to protect the company and its minority shareholders from potentially harmful self-dealing.
I. Controlling Shareholder
Let’s start by defining controlling shareholder. The terms majority shareholder and controlling shareholder both refer to a shareholder or group of shareholders who have the power to exercise control over a...
