Which of the Following Was the Result in the Case

question 48

Multiple Choice

Which of the following was the result in the case in the text from the Delaware Court of Chancery involving a dead-hand pill under Delaware law?

• A) That the directors appropriately used the dead-hand pill which guaranteed that majority shareholders in place before a hostile bidding attempt were entitled to vote to block any later proposed vote on a merger.
• B) That the directors appropriately used the dead-hand pill because directors are entitled to use any means necessary in order to block a hostile takeover.
• C) That the pill violated the state general corporation law for a number of reasons including that it violated the directors' duty of loyalty.
• D) That the pill, which could only be redeemed by directors in office after a hostile bidder gained control or by their designated successors, violated the state general corporation law because it prejudiced directors in place prior to the takeover.