Lymon Properties Group, Inc., is a developer and operator of retail shopping malls. Lymon owns 75 percent of the shares of LDC, Inc., whose business is investing in undeveloped land. All of LDC's directors are appointed by Lymon. LDC owns 320 acres of land that Lymon wants to purchase for mall construction. LDC purchased the land two years ago for $6.4 million. Lymon has offered to purchase the land for $8.2 million. When approving the purchase, with what standard of conduct must Lymon's board comply? What should LDC's board of directors do before accepting the offer in order to reduce the likelihood that LDC's minority shareholders will be able to sue LDC's board successfully for selling the land for too low a price?
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