Opinion ID: 1497598
Heading Depth: 1
Heading Rank: 8

Heading: duty of loyalty issues on remand

Text: The Court of Chancery assiduously followed this Court's mandate to address specific matters regarding the independence and disinterest of Technicolor's board of directors. The Court of Chancery described its task as follows: I now turn to an attempt to follow the Supreme Court's directions with respect to the Technicolor board's independence and disinterest.... First, I revisit the issue of what standard should be applied to determine whether an individual director is interested in a transaction. Next, I address the test determining whether the board as a whole has been tainted by the existence of one or more interested directors. Finally, I consider the effect, if any, the Technicolor's charter provision requiring directorial unanimity has upon the duty of loyalty. Cinerama, 663 A.2d at 1150. The manner in which each loyalty issue was resolved will be reviewed seriatim.