Will CBS’s latest attempt to block Shari Redstone from forcing a merger with Viacom hold up?
CBS’s board voted on Thursday to dilute Shari Redstone’s controlling interest in the company, reducing it from 79 percent to 17 percent. But the move might be in vain, according to Charles Whitehead, professor of law at Cornell University, because it disregarded Redstone’s change to the company’s bylaws earlier in the week, which require 90 percent of the board’s approval for any motion to carry.
The ordeal will soon head back to court — where CBS’s dilution strategy likely won’t stick.
“[Redstone’s] permitted to exercise her voting rights being given,” Whitehead told TheWrap. “This is not something the board should be stepping in and blocking. You have to accept that I, as a shareholder, have the ability to do this. It doesn’t say I have the ability to do this...
CBS’s board voted on Thursday to dilute Shari Redstone’s controlling interest in the company, reducing it from 79 percent to 17 percent. But the move might be in vain, according to Charles Whitehead, professor of law at Cornell University, because it disregarded Redstone’s change to the company’s bylaws earlier in the week, which require 90 percent of the board’s approval for any motion to carry.
The ordeal will soon head back to court — where CBS’s dilution strategy likely won’t stick.
“[Redstone’s] permitted to exercise her voting rights being given,” Whitehead told TheWrap. “This is not something the board should be stepping in and blocking. You have to accept that I, as a shareholder, have the ability to do this. It doesn’t say I have the ability to do this...
- 5/18/2018
- by Sean Burch and Trey Williams
- The Wrap
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