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: Delaware Business Litigation ReportCourt Of Chancery Explains Delaware Freeze Out Law
By Edward M. McNally
In Re CNX Corporation Shareholders Litigation, C.A. 5377-VCL (July 5, 2010)
Perhaps no area of Delaware corporate law is as confusing as that applicable when a company is taken private by a majority owner in a freeze out of the other shareholders. This scholarly opinion explains that at least 3 different standards of review have been applied by the Court of Chancery in its review of such transactions. As a result, the Court has certifiied its latest decision for appeal to the Delaware Supreme Court with a request that the law be clarified.
Until that clarification is issued, however, this is the definitive analysis of Delaware law in this area and deserves to be read, carefully.
Full post as published by Delaware Business Litigation Report on July 05, 2010 (boomark / email).
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