Do right Corporation was a publicly traded company that, among others, owned and operated one of the largest shopping mall security service in the country. Because of an economic slowdown, many of the malls DoRight's services placed further economic strain on DoRight, preventing DoRight from raising security rates despite increasing costs. In February 2010. Sndidely proposed a cash-out merger, 

in which Whiplash would purchase all shares of DoRight,.and Doright would merge with Whiplash. Snidely offered $57.50 for each share and historically had never traded higher than $34.25 per share. Dudley. concerned about DoRight's future, decided in good faith to pursue the merger. In May 2010. before discussing the deal with anyone, 

Dudley telephone his broker and purchased 75,000 shares of DoRight at $ 28.25 per share. Dudley then presented the proposed merger to DoRight's board of directors and urged them to approve it. The board met, study, valuation or otherwise, voted to submit the proposed deal to a shareholder vote. the shareholders overwhelmingly approved the deal because of the immediate profit they would realize on their shares. based solely on shareholder approval, the board unanimously approved the merger, and all shareholders received cash for their shares. In November 2010, shortly after completing the merger, 

Whiplash sold DoRight's security business to Pain Capitol for a substantial profit. Did Dudley breach any duties to DoRight and/ or its shareholders?

Answer rating: 100% (QA)

step 1 No Dudley did not breach any duties to Do Right or its shareholders step 2 In February 2010 S... View the full answer