The Moonrock Merger

Topic 

The Moonrock Merger

Instructions 

Write a paper an analysis paper describing The Moonrock Merger

Answer Preview 

According to the existing legal framework, the board has the right to make the decision on behalf of the shareholders who have elected them. Under such considerations, the shareholders are considered by the law as not intelligent enough to decide whether a sale or purchase of any property is to their best economic interest. This legal context, therefore, give the board of directors the power to make the sole decision on purchasing or selling a property owned by the shareholders. Their evaluation is usually based on the presumption that they uphold the duty of care and hence make the decision to the best interest of the shareholders and mitigate and kind of harm.

Shareholder rights

While the board of directors is mandated to undertake and transact activities on behalf of the shareholders, they are also provided with a number of rights that can be granted within the context of the merger. Within the context of any merger, like was the case of Moonrock, some of the shareholders might fail to get satisfied with the offer (Kalodimos and Lundberg 54). The individuals with different opinions can be considered to be the dissenting shareholders who might not perceive the transaction as having been undertaken fairly.

Word Count: 1600