A recent survey found that 78 % agreed that company managements have lost sight of their obligations to their shareholders.
We think it is incompatible with the obligations of a Chief Executive of a Listed Company to be involved with parties that are attempting to buy the business he is running in a fiduciary capacity for the benefit of the shareholders. While not directly comparable to Insider Trading, this practice - widely accepted today - does not pass the smell test.
Only after a proper cooling off period of between one and two years should a Senior Management Member be allowed to be part of any scheme to bid for his previous employer.
Yesterday, in McRitchie v. Zuckerberg (Del. Ch.; 4/24), Vice Chancellor
Laster confirmed that directors owe “firm-specific fiduciary duties” under
Delaware...
11 hours ago