Seller's Directors Beware: You May Be Liable When the Buyer's Leveraged Buyout Goes Bad
By EsqSocial Corporation 19/05/21
For the past two decades, courts have afforded directors and officers considerable protection for a good-faith decision to proceed with a highly leveraged sale that ultimately led to bankruptcy or liquidation. Courts are generally reluctant to second-guess directors’ and officers’ decisions to enter into potentially risky transactions. State legislatures have also protected directors and officers, passing laws to protect them from liability for their good-faith “business judgment” decisions –...
By: BakerHostetler