Reporter:
Edward B. Rock, New York University School of Law, New York, NY
Associate Reporters:
Jill E. Fisch, University of Pennsylvania Carey Law School, Philadelphia, PA
Marcel Kahan, New York University School of Law, New York, NY
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
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
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.