Court of Chancery Applies Entire Fairness Standard to Stock Sale Approved by Interested Board of Directors
By: Annette Becker and Marissa Leon
In Marion Coster v. UIP Companies, Inc. (C.A. No. 2018-0440-KSJM) the Delaware Court of Chancery (the “Court”) addressed a dispute over the control and ownership of a company following a sale of unissued stock to a company executive. The Court applied the entire fairness standard to review the stock sale transaction and held it was fair in light of a valuation report obtained by the defendants in the case and entered judgment in favor of the defendants validated the stock issuance.
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