2 ms·
Giving the other investors the opportunity to participate on a pro rata basis isn't per se "fair." The technique can be used to freeze out other shareholders t
by muerdeme 16y ago
Giving the other investors the opportunity to participate on a pro rata basis isn't per se "fair." The technique can be used to freeze out other shareholders that don't have the liquid capital to participate in the transaction.
- btilly 16y agoLegal fairness may bear little relation to what lay people consider fair. For instance as long as you and a large corporation both have lawyers, a court fight between the you is considered "fair" even though the large corporation has substantially more resources and likely has better lawyers. In this case the standard of fairness to apply is Delaware law. And under Delaware law, that was fair.