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Fiduciary Out |
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Fiduciary out A provision that permits the Board of Directors to terminate a proposed merger if a better deal arises with another party. Fiduciary Out A provision in some merger agreements allowing the board of directors of one of the companies to terminate the deal before it is finalized if it receives a better offer from another company. A fiduciary out provision exists because boards of directors have a responsibility to always act in the best interests of shareholders. A better offer for shareholders is almost always thought to be in their best interests. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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