Employment of Corporate Executives by Majority Stockholders, 47 Yale Law Journal 1079 (1938)
"The business of a corporation shall be managed by its board of directors." In this simple, abrupt statement is embodied a rule of law which is part of the corporation statutes of almost every state. Though innocuous on its face, this rule has been applied by the courts with telling effect to invalidate a particular type of contract, and much chagrin has been caused to the unsuspecting lawyers who drew such contracts.
Date of Authorship for this Version
Meck, John M., "Employment of Corporate Executives by Majority Stockholders" (1938). Faculty Scholarship Series. Paper 4117.