• Directors With Specialized Expertise May Be Held to a Higher Standard
  • November 4, 2004 | Author: Edward W. Wellman
  • Law Firm: Parker Poe Adams & Bernstein LLP - Charlotte Office
  • A Delaware court's recent decision has suggested that a director with specialized expertise may be held to a higher standard of fiduciary duty than other directors on the board. On May 3, 2004, the Delaware Court of Chancery decided In Re Emerging Communications, Inc. Shareholders Litigation, No. CIV.A. 16415 (Del. Ch. May 3, 2004, revised June 4, 2004), in which the court imposed liability on the defendant corporation and several of its directors in connection with the plaintiffs' assertion that the sale price in a two-step "going private" acquisition was too low.