Which of the Following Was the Result on Appeal in the Case

question 56

Multiple Choice

Which of the following was the result on appeal in the case in the text Omnicare,Inc.v.NCS Healthcare,Inc.,involving whether directors of an insolvent publicly traded company violated their fiduciary duty when they entered into an agreement for the sale of the company to a particular interested buyer regardless of other offers?

• A) That the directors violated their fiduciary duty and lacked the authority to agree to an absolute lock-up guaranteeing the sale and agreeing to forego consideration of future offers.
• B) That the directors violated their fiduciary duty because the agreement was kept secret from majority shareholders but that, otherwise, the agreement foregoing consideration of future offers would have been valid.
• C) That the directors violated their fiduciary duty because the agreement was kept secret from minority shareholders but that, otherwise, the agreement foregoing consideration of future offers would have been valid.
• D) That the directors satisfied all fiduciary duties because there was no evidence of bad faith or self dealing.

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Definitions:

Will

A legal document that outlines how a person's assets will be distributed after their death.

Intestate

Having died without leaving a valid will.

Testator

A deceased person who died leaving a will.

Revoke

To officially cancel or withdraw a right, permission, or offer, rendering it no longer valid or in effect.