Question
30. The Board of Directors of InSync, Inc. wants to avoid regulations imposed on public companies, such as Sarbanes Oxley, by going private. They are
30. The Board of Directors of InSync, Inc. wants to avoid regulations imposed on public companies, such as Sarbanes Oxley, by going private. They are planning to buy out for cash the minority shareholders. In order to ensure that the going private transaction can survive a challenge by a dissenting minority shareholder, many states will require that the Board of InSync, Inc. must demonstrate:
Group of answer choices
That the board of directors has established a fair price for the shares of the minority shareholders based on speculative projections
That the board of directors had no fiduciary duty in connection with this transaction
That the board of directors established a fair price for the shares of the minority shareholders based on all factors relevant to the value of the shares.
That the board of directors has satisfied the requirements of the insider trading rules
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started