8/3/2019 BizOrgSprSum

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BizOrgSpr11 BRAR

1. Corporationsa. Transfer of control

i. Control block at premium okii. Sale of seats ~ok, immediate transfer of seats ok (formality)

iii. Tag along rights (in SH agreement): min SHs can join if maj SHs selling (rofr) b. Fundamental corporate changes

i. Mergers and1. Regular: a + b = A, SH of b get shares of A2. Cash-out: a + b = A, SH of b get $3. Freeze-out: Cash-out where a is maj. SH of b ($ remedy)

a. EFT (dealing and price) presumed when approved by:i. Maj of min SHs or by ID BMs.

ii. Dissolution, SOSAA, SAA (importance and effect)1. Procedure: Board app/rec->maj SH (or voting SH) app-, if b = 20%, a & b vote, if a has

90% of b, no vote for b-, SH Appraisal (~dis, ~SOSAA[DE]).

c. Takeovers1. Tender offers: public invitation to buy, hostile to board (Conditional, Two-Tier[coercive])

ii. Defensive measures1. Board may do so if there is: RG to believe DCPE exists because of anothers stock

ownership: if reasonable response to threat then BJR

2. Must cease if sale inevitable (rather max $ for SHs)2. Shareholders

a. Shareholder derivative suits (claim/harm belongs to corp, ~direct)i. Req: shares, bond, demand (Y,BJR) OR excuse demand [RD maj board ~disint/ID ($/soc)]

ii. SLCs:of disint/ID BMs or more, if ID then BJR, formed at (refuse) or after (R12b) demand.b.

Shareholder Agreements

i. Any: how to vote (dirs, FCCs, cuml. Voting), unanimous not req.ii. CHC: decide director duties (~div) if unanimous (min: no objection = agree).

3. Identifying Misconducta. Shareholder duties in CHC

i. Good faith: frozen out of $ benefit (cant sell shares, opp. conduct ~reas. exp.), bus.reason, equalii. Statutory dissl: maj of SHs act(unfair,illegal,opp, fraud, waste,deadlock*dir/sh+), buyout or dissl.

b. Fiduciary duties (to corporation, SHs derivatively)i. Care: RPBM, BJR if ~fraud, illegality, or COI, GN: uninformed decision(can rely)

ii. Loyalty: corp first, self dealing (interest 2 sides, cured: maj.disin SH/dir(~GN)/fair), opp of corp(&capable,LOB,exp. Int.,COI; Safe Harbor*considered/rejected:ID BMs), non-compete.

c. Insider tradingi. 10B5: Any: Tippee(insider[O/D:NP nfo], breach, gain), Tippor (scienter), MA(3p,gov),

(ind*reliance:dir,indir] or gov), duty 2 disclose Mnfo(reas. inv.) or ~trade.

ii. 16B: Pub: buysell, 2 trans w/i 6mos, O/D@trans1, 10% SHcorp.d. Indemnification

i. Corp or ~Corp v. Dir: mustif dir successful on merits or otherwise (SOL, dismiss, etc.)ii. Corp v. Dir: may notif dir breached fid. Duty (dir/dirs ins. pays), if settle(costs only, ~settle $)

iii. ~Corp v. Dir: canif dir acted in good faith reas. bel. Corps best int., commit to by AOI.