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  1. Home
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  3. Corporate Governance
Home Corporate Governance
  1. Publications
Restatement of the Law,

Corporate Governance

The Institute first tackled the subject of corporate governance more than 25 years ago in Principles of the Law, Corporate Governance: Analysis and Recommendations. Although it provided valuable guidance in a new and unfamiliar area of law at the time, this area has evolved quite a bit in the intervening decades. This project examines the state of the law today and reflects it in a Restatement.

Reporter:
Edward B. Rock, New York University School of Law, New York, NY 
Associate Reporters:
Marcel Kahan, New York University School of Law, New York, NY
Elisabeth de Fontenay, Duke University School of Law, Durham, NC [from September 2023]
Jill E. Fisch, University of Pennsylvania Carey Law School, Philadelphia, PA [to July 2023]

Tentative Draft No. 2 (softbound)

122 pages, 2024, #1RCGTD2

Tentative Draft No. 2 contains material from Chapter 1, Definitions, and Chapter 5, Duty of Loyalty. The membership voted to approve this draft at the 2024 Annual Meeting subject to the discussion at the Meeting and editorial prerogative. This material may be cited as representing the Institute’s position until the official text is published.

Table of Contents

Section                                                                                                                                                  Page

Project Status at a Glance ....................................................................................................................... xiii

Foreword ................................................................................................................................................. xiv

Reporters’ Memorandum ......................................................................................................................... xv

Projected Overall Table of Contents ........................................................................................................ xvi

 

Chapter 1. Definitions

§ 1.13. Director .......................................................................................................................................... 1

§ 1.27. Officer ............................................................................................................................................ 2

Chapter 5. Duty of Loyalty

Introductory Note ....................................................................................................................................... 5

§ 5.02. Interested Transactions Involving a Director or Officer .................................................................. 5

§ 5.05. Use by a Director or Officer of Corporate Position ...................................................................... 33

§ 5.06. Use by a Director or Officer of Corporate Property or Corporate Information ............................. 43

§ 5.07. Taking of Corporate Opportunities by Directors or Officers ......................................................... 52

§ 5.08. Competition with the Corporation ................................................................................................ 71

§ 5.11. Tender Offers by Controller Followed by Freeze-Out Mergers .................................................... 80

§ 5.16. Transfer of Voting Equity Securities by Controller; Controller’s Duty of Care in the Transfer of Securities ................................................................................................................................................. 88

 

Appendix A. Black Letter of Tentative Draft No. 2 .............................................................................. 95

Appendix B. Black Letter of Sections Approved by Membership ................................................... 101

$30.00

Tentative Draft No. 2 (Electronic PDF)

122 pages, 2024, #1RCGTD2E

Tentative Draft No. 2 contains material from Chapter 1, Definitions, and Chapter 5, Duty of Loyalty. The membership voted to approve this draft at the 2024 Annual Meeting subject to the discussion at the Meeting and editorial prerogative. This material may be cited as representing the Institute’s position until the official text is published.

Table of Contents

Section                                                                                                                                                  Page

Project Status at a Glance ....................................................................................................................... xiii

Foreword ................................................................................................................................................. xiv

Reporters’ Memorandum ......................................................................................................................... xv

Projected Overall Table of Contents ........................................................................................................ xvi

 

Chapter 1. Definitions

§ 1.13. Director .......................................................................................................................................... 1

§ 1.27. Officer ............................................................................................................................................ 2

Chapter 5. Duty of Loyalty

Introductory Note ....................................................................................................................................... 5

§ 5.02. Interested Transactions Involving a Director or Officer .................................................................. 5

§ 5.05. Use by a Director or Officer of Corporate Position ...................................................................... 33

§ 5.06. Use by a Director or Officer of Corporate Property or Corporate Information ............................. 43

§ 5.07. Taking of Corporate Opportunities by Directors or Officers ......................................................... 52

§ 5.08. Competition with the Corporation ................................................................................................ 71

§ 5.11. Tender Offers by Controller Followed by Freeze-Out Mergers .................................................... 80

§ 5.16. Transfer of Voting Equity Securities by Controller; Controller’s Duty of Care in the Transfer of Securities ................................................................................................................................................. 88

 

Appendix A. Black Letter of Tentative Draft No. 2 .............................................................................. 95

Appendix B. Black Letter of Sections Approved by Membership ................................................... 101

$10.00

Tentative Draft No. 1 (softbound)

158 pages, 2022, #1RCGTD1

Tentative Draft No. 1 contains Sections from Chapter 1, Definitions; Chapter 2,  The Objective of the Corporation; Chapter 4, Duty of Care and the Business Judgment Rule; and Chapter 5, Duty of Loyalty. The membership voted to approve §§ 1.10, 1.23, 1.24, 2.01, 4.01, 4.02, 5.01, and 5.10 of this draft at the 2022 Annual Meeting, subject to the discussion at the Meeting and editorial prerogative. This approved material may be cited as representing the Institute’s position until the official text is published.

TABLE OF CONTENTS

Section                                                                                                                        Page

Project Status at a Glance ............................................................................................ xiv

Foreword ....................................................................................................................... xv

Reporters’ Memorandum .............................................................................................. xvi

Projected Overall Table of Contents ............................................................................ xviii

CHAPTER 1

DEFINITIONS

§ 1.10.Controller ................................................................................................................. 1

§ 1.23. Interested ................................................................................................................ 7

§ 1.24. Independent ........................................................................................................... 19

CHAPTER 2

THE OBJECTIVE OF A CORPORATION

§ 2.01. The Objective of a Corporation .............................................................................. 25

CHAPTER 4

DUTY OF CARE AND THE BUSINESS JUDGMENT RULE

Introductory Note ............................................................................................................... 59

§ 4.01. The Duty of Care ................................................................................................... 60

§ 4.02. The Business Judgment Rule ................................................................................ 67

CHAPTER 5

DUTY OF LOYALTY

§ 5.01. The Duty of Loyalty ................................................................................................ 83

§ 5.02. Interested Transactions Involving a Director or Officer .......................................... 87

§ 5.10. Interested Transactions Involving a Controller ..................................................... 116

Appendix. Black Letter of Tentative Draft No. 1 ......................................................... 132

$30.00

Tentative Draft No. 1 (Electronic PDF)

158 pages, 2022, #1RCGTD1E

Tentative Draft No. 1 contains Sections from Chapter 1, Definitions; Chapter 2,  The Objective of the Corporation; Chapter 4, Duty of Care and the Business Judgment Rule; and Chapter 5, Duty of Loyalty. The membership voted to approve §§ 1.10, 1.23, 1.24, 2.01, 4.01, 4.02, 5.01, and 5.10 of this draft at the 2022 Annual Meeting, subject to the discussion at the Meeting and editorial prerogative. This approved material may be cited as representing the Institute’s position until the official text is published.

$10.00

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