Risk #10: Fiduciary Duties Revisited: Delaware Law and the Fund Manager’s Evolving Obligations

A significant shift in Delaware law is reshaping how courts evaluate conflicted transactions involving controlling stockholders, including private fund managers that control portfolio companies. The changes make applying procedural safeguards all the more important. Fund managers who ensure the proper process is followed may significantly reduce their litigation exposure from minority shareholders.... By: Proskauer - The Capital Commitment