Assigned Readings No.

The list below sets out the first set of readings we will cover, organized by group in the order
we will review them. They are not an indication of the number of pages we will cover in each
class. Specific reading assignments will be made available for each class.

We may adjust these readings over the course of the semester. I expect to distribute later sets
of Assigned Readings as the course progresses.

Hypothetical problems will be posted periodically on the course website, to be reviewed in

class. Students are not expected to prepare written responses.

Pages

1. Note on the Agency Relationship 6-20

Review the Mrs. Fields hypothetical problem (course website)

2. The Foundations of a Corporation 191-193

207-219

Read Del. Gen. Corp. Law (“DGCL”) §§ 105, 152, 157, 165
Skim Model Bus. Corp. Act (“MBCA”) sections and various corporate forms (in
particular, the Minutes of Organization Meeting) referenced in the Casebook
In addition, skim the Simple Form of Certificate of Incorporation in the Stat. Supp.
and Cal. Corp. Code § 2115

3. Review Problem 1 (course website), including the statutory references in

the Review Problem

4. Preincorporation Transactions by Promoters; Consequences of Defective

Incorporation 408-415
Review Problem 2 (course website)

Skip Restatements at CB p. 410

In addition, read/review DGCL§§ 103, 105, 165

5. The Classical Ultra Vires Doctrine 248-251

Interests Other than Maximization of the Shareholders’ Economic
Wealth 253-266

Skip Indiana and Pennsylvania statutes at CB p. 262

In addition, skim/review DGCL §§ 109, 141(a), 143, 242(b)

6. Shareholder Voting 294-302

The Election and Removal of Directors 233-243
Shareholdership in Publicly Held Corporations 302-313
Eisenberg excerpt; The Legal Distribution of Power between
the Board and the Shareholders 268-271
Business Organizations Professor Whitehead

Skim Cal. Corp. Code §§ 303, 304, NYBCL § 706, NYSE Listed Company Manual
§313.00, and read/review DGCL §§ 109, 141(b), 151(a), 211, 212, 216, 219, 220(b),
221, 223, 242(b), 350, 351(3), 354, and MBCA § 10.20(b)(2)

7. Equitable Limits on the Board’s Legal Powers 271-283

The Role of Bylaws in the Allocation of Power Between the Board
and the Shareholders 283-294

Skip SEC Proxy Rule 14a-8

Read/review DGCL §§ 109, 141(a), 141(b), 141(d), 141(k), 157, 211(b), 211(d),
223(a), 228, and MBCA § 7.02; and skim Securities Exchange Act of 1934
(“Exchange Act”) §13(d)(1)(C) and Item 4 of Schedule 13D

8. Requisites for Valid Action by the Board 228-231

Requisites for Valid Action by Corporate Officers (skip the Note on
Authority) 244-248
The Normal Requisites for Valid Shareholder Action 231-233

Skip the RMBCA readings listed at CB p. 232, except §§ 7.02 and 7.04
In addition, read/review DGCL §§ 242(b)(1), 251(c) and MBCA § 10.03(e)

9. Note on the Management of Publicly Held Corporations 335-340

Skip the ALI readings listed at CB p. 340

Skim Exchange Act § 10A, Sarbanes-Oxley Act §§ 302, 304, 404, 407, 906, and
NYSE Listed Company Manual §§ 303A.00-303A.07 (excluding all commentary
and explanatory notes)
In addition, read/review DGCL §§ 141(c), 141(e), 220(d), and MBCA § 8.01(b)

10. Shareholder Information Rights Under State and Federal Law 343-366

Skim the section at CB pp. 363-367 (we will go over this in more detail in class), as
well as the Exchange Act statutes/rules referenced on CB p. 365
Skim RMBCA §§ 7.20, 16.01-16.04, 16.20, Cal. Corp. Code § 1501, and NYBCL
§ 624(e)
In addition, read/review DGCL §§ 212(b), 327, Exchange Act Rule 14a-7, and
Sarbanes-Oxley Act § 302(a)(2)

11. The Proxy Rules: An Introduction 367-374

The Dissident’s Access Provision: Rule 14a-7; Shareholder Proposals
Under Rule 14a-8 (skip Standard Pacific Corp.) 374-375
Note on Risk-related Proposals 381-382
Shareholder Access to the Nominating Process 384-385
Funding Proxy Contests 327-335
Review Problem 4 (course website)

Skim the Form of Proxy Statement and Form of Proxy referenced at CB p. 369

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12. Borak, Wyandotte, Cort 386-387

Note on Materiality 393-394
Mills 387-393
Virginia Bankshares, Wilson 394-404
Notes 404-407

Reskim the Form of Proxy

In addition, review ABA Model Rule 1.13, and skim Exchange Act §§ 27, 32(a),
and 17 C.F.R. Part 205, §§ 2.05.2-205.6

13. Limited Liability and Its Exceptions 415-416

Walkovszky, Berle Article 422-429
Radaszewski 437-438
Note on Direct Liability 446-450

In addition, skim DGCL §§ 154, 170(a), 242(a)(3), 244(a)(4), NYBCL § 102(a)(8),

510, Cal. Corp. Code § 500, and Restatement (2nd) Agency § 140

14. Fletcher 416-422

Note on Limited Liability Against Tort Claimants 429-434
Minton, Arnold, Slottow, Truckweld 434-437
Sea-Land Services, Kinney, Eisenberg Note, Berkey, Carte Blanche,
Piercing Notes 438-446
Equitable Subordination of Shareholder Claims 225-228
The Corporate Entity and the Interpretation of Statutes and Contracts 450-451
Review Problem 3 (course website)

In addition, skim DGCL §§ 172, 174 and NYBCL §§ 510, 630, 719

15. The Duty of Care 622-638

In addition, read/review DGCL § 141(e), NYBCL § 715(h), Sarbanes-Oxley

Act § 407, and Exchange Act § 10A(m)

16. Kamin v. American Express 638-642

Note on the Divergence of Standards 642-648
Van Gorkom and Note 648-665
Note on Directors’ and Officers’ Civil Liability 683
Liability Shields 683-690
Note on Directors’ and Officers’ Liability Insurance 690-692
Note on Directors’ and Officers’ Criminal Liabilities 704-707
Review Problem 5 (course website)

Skip Virginia Corp. Code § 13.1-690 and Form of Directors’ and Officers’
Liability Insurance
In addition, read/review DGCL § 145 and MBCA § 2.02(b)(5), and skim MBCA
§§ 8.51, 8.52, 8.55, 8.56, 8.57 (excluding all commentary and explanatory notes)

17. The Duty to Monitor, Compliance Programs, and Internal Controls 666-683

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18. Stone v. Ritter 698-700

In re Walt Disney 693-697
Miller v. AT&T 700-704

In addition, review Sarbanes-Oxley Act §§ 302, 404

19. Hostile Takeovers and Defending Control 1243-1253

Unocal; Notes on Unitrin and Unocal 1253-1266

As background, skim the Exchange Act rules (in particular, Rule 14d-10), Schedule
TO, and Schedule 14D-9 referenced at CB p. 1243; and skip the Hart-Scott-Rodino
Act

As review, you may want to skim Blasius, where we first saw the Unocal standard in
the Casebook

20. Moran; Carmody; Quickturn 1266-1283

Revlon 1291-1301
Air Products 1283-1291

Review DGCL §§ 141(a), 141(d), 152, 157, 202(b); Exchange Act Rule 14d-10
Read/review NYSE Listed Co. Manual §§ 312.03(c) and 313.00

21. Paramount and Note on Revlon 1301-1321

22. Omnicare; State Takeover Statutes 1324-1344

Note on Defensive Maneuvers Outside of Delaware 1321-1324

Read DGCL §§ 146, 203, 251

23. Self-Interested Transactions 708-718
726-728
746-748
748-756

Read RMBCA § 8.60, ALI Principles of Corp. Governance §§ 1.03, 5.02,

DGCL § 144, Exchange Act Rule 10A-3(e)(8), NYSE § 303A.02

24. Corporate Opportunities 780-783

794-802

Read ALI Principles of Corp. Governance § 5.05

25. Controlling Shareholders and Sale of Control 811-820

842
846-858
862-870

For the readings below, you may disregard the Statutory Supplement references in the

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Casebook, except as otherwise indicated.

26. Securities Regulation – Efficient Markets and Fraud & Manipulation

915-923
882-889
Statutory Supplement – Securities Exchange Act of 1934 §10(b) and SEC
Rule 10b-5

27. Securities Regulation – Insider Trading 946-947

968-976
991-1000
976-987

Statutory Supplement – Securities Exchange Act of 1934 §§ 14(e), 20A, 21A, and
SEC Rules 10b-5, 10b5-1, 10b5-2, and 14e-3