Sinclair Oil Corporation organized a subsidiary, Sinclair Venezuelan Oil Company (Sinven) for the purpose of operating in
Question:
(a) What are the arguments that the transactions between Sinclair and Sinven should be subjected to judicial scrutiny and upheld only if Sinclair shows them to have been entirely fair and entered in good faith?
(b) What are the arguments that the transactions between Sinclair and Sinven should be subjected to the business judgment rule and overturned only if Sinven shows that Sinclair had not acted with due care, in good faith, and in a manner reasonably believed to be in the best interests of Sinven?
(c) Explain which standard should apply.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Smith and Robersons Business Law
ISBN: 978-0538473637
16th edition
Authors: Richard A. Mann, Barry S. Roberts
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