In the context of takeovers,board members cannot reject an offer without taking sufficient time to analyze its merit.

Question

Quizplus · Accepted Answer

Under the duty of care and duty of loyalty, board members are required to carefully analyze any takeover offer and ensure that they act in the best interest of the company and its shareholders. They cannot simply reject an offer without undertaking a diligent and informed evaluation of its potential benefits and drawbacks.

In the Context of Takeovers,board Members Cannot Reject an Offer