Disney/Gold lawsuit given the green light

[wendybeth]

Looks like Eisner should just take up residence in Delaware: Delaware court approves lawsuit (http://www.marketwatch.com/tools/quotes/newsarticle.asp?guid=%7B22A5E058-A897-4C69-B3D5-9A9F802F0B21%7D&siteid=mktw&dist=nbk&symb=)


"In his ruling, Chancellor Chandler stated, " ... plaintiffs have alleged facts suggesting that the Company's board did not go about the process of searching for a new CEO with 'open minds,' without prior determinations and giving "full consideration" to external candidates. The complaint alleges that only one external candidate was interviewed, that Mitchell told that candidate 'she was not a serious candidate,' and that Eisner's presence at interviews of external candidates, "was intended to chill and did chill full consideration of qualified external candidates for the position of CEO.'" "Should these allegations be proven, plaintiffs could be entitled to the relief they seek because the board's statements materially misled plaintiffs with respect to the board's intent to conduct a bona fide executive search process."

(http://mailcenter.comcast.net/wmc/v/wm/42A4E01900062853000074152200750744CBCDC9089B0A0D07 9D019B?cmd=Show&no=222&uid=341967&sid=c0)

[scaeagles]

At least you have a descriptive thread title this time. :p ;)

[wendybeth]

Brat.;)

[Prudence]

Anyone know why it was filed in Delaware? Is Disney incorporated there? Do people live there? I'm too lazy to look it up.

[wendybeth]

Quite a few companies are incorporated there, along with the WDC. They have an interesting court system as well: Delaware, incorporated (http://www.nationmaster.com/encyclopedia/Delaware-Corporation)

[Prudence]

I was wondering if that was it. We read a lot of corporate cases out of DE in our civpro class and I was wondering if it was just coincidence (like the editors live there) or if there really was some wackiness with DE corporate law that made companies with primary places of business across the country incorporate in Deleware.

[wendybeth]

It's interesting that this same judge has yet to issue his verdict in the Ovitz trial. What the hell is taking him so long?

[Name]

There are numerous advantages to incorporating as a delaware corporation. I don't remember all of them, but most fall in tax rules, as well as other rules, delaware has some of the most corporation friendly rules out there. Just FYI, California has some of the least friendly rules.