PHL274H5 Lecture Notes - Bell Canada, Externality, Tom Regan
Document Summary
Ap smith mfg v barlow: this guy donated to university. Judge favoured in the case of giving money. That an executive can make such a decision for a long term interest of survival or flourishing of the company. Bce inc v 1976 debentureholders: bell canada, in 2008, they were a target of a buy out, they had three offers to choose on. A group on shareholders sued the company so they showed that the buyout reduced the value of the shares. It was not done in interest of the shareholders: in 2008, supreme court favored in rule of bell against the shareholders. In these kind of change of control situations, the managers are permitted to take interest of wide range of groups. Directors have to look at the long term interest. Also in this decision, concept of corporate citizen. Don"t know what the legal preecedings would be after this.
