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Court Of Chancery Explains Disclosure Rules For Management Contracts

Posted In M&A

In re Micronetics Inc. Shareholder Litigation, C.A. 7626-VCP (July 24, 2012)

While each disclosure case will turn on its own facts, this decision gives an excellent overview of when employment contracts with management must be disclosed when notifying stockholders of a proposed merger with an acquiring company.  When management has been involved in the merger negotiations, any employment agreements and the surrounding circumstances must be disclosed.

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