For Sale: Director Duties

What are the board of directors’ duties during the sale of a company? That is, when the seller is experiencing a change of control or a merger or acquisition?

As always, the board must observe its duty of care and the duty of loyalty. The duty of care requires the directors to gather the necessary information to decide the appropriate buyer. The duty of loyalty means that the board cannot act in their self-interest, such as preserving their jobs, rather than in the interest of the shareholders…

Douglas Y. Park runs through key Revlon duties in his post, The Board of Directors’ Duties During The Sale Of A Company at DYP Advisors.

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