Court of Chancery of Delaware

A corporation's delinquency in its federal periodic reporting obligations does not necessarily deprive that corporation's common stockholders of the power to authorize a sale of substantially all of the corporation's assets. In a suit brought by common stockholders challenging a corporate transaction, the court enters an order prohibiting the corporation and its directors from making any agreement to sell all or substantially all of the assets that is not conditioned upon the approval of the corporation's common stockholders.

Appellate Information

• Decided 11/29/2006
• Published 12/11/2006

Judges

Court

• Court of Chancery of Delaware

Counsel

• For Appellant:
  
• Elizabeth M. McGeever, Bruce E. Jameson, Paul A. Fioravanti, Jr., Laina M. Herbert, Prickett Jones & Elliott, P.A., Wilmington, DE;  Marc R. Rosen, Kleinberg, Kaplan, Wolff & Cohen, P.C., New York City, for the Plaintiffs.


• For Appellees:
  
• Daniel A. Dreisbach, Steven J. Fineman, Geoffrey G. Grivner, Daniel M. Silver, Richards, Layton & Finger, P.A., Wilmington, DE, for Defendant Metromedia International Group, Inc., Todd C. Schiltz, Wolf, Block, Schoor and Solis-Cohen, LLP, Wilmington, DE, for Defendants Mark S. Hauf, John Chalsty, Alan K. Greene, Leonard White, Clark A. Johnson, David Gale, Wayne Henderson, Stuart Subotnick, I. Martin Pompadur, Harold F. Pyle, III, Bryce D. Elledge, Natalia Alexeeva., Martin Flumenbaum, Daniel J. Leffell, Paul, Weiss, Rifkind, Wharton & Garrison, LLP, New York City, for all Defendants.