Question
LOST Corp., a Hawaii corporation, earns $500 million annually in its primary business, selling macadamia nuts. It also has a division that sells bomb-proof underground
LOST Corp., a Hawaii corporation, earns $500 million annually in its primary business, selling macadamia nuts. It also has a division that sells bomb-proof underground hatches. This divisions revenue amounts to $50 million per year, although the executive in charge argues that the division is due for a resurgence. The LOST Corp. board is considering selling the division, in part because the thirty minutes that the board spends annually discussing the business is a distraction from the more important macadamia nut business.
The LOST Corp hires you to advise them on a prospective sale of the bomb-proof underground hatch business. What recommendations would you make to ensure that the boards decisions related to the sale of the business comply with the directors fiduciary duties?
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