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Management Studies

Assume that Widgets, Inc. is a typical corporation organized in the United States. The CEO of Widgets, Inc. wants to merge Widgets, Inc. with Gigantico, Inc. He engages in talks with the CEO of Gigantico, Inc. regarding a merger. He does so without authorization from the Board of Directors at Widgets, Inc. or the shareholders. The two CEOs reach a tentative agreement as to how best a merger may be accomplished. The CEO of Widgets, Inc. then buys a large amount of Widgets, Inc. stock based upon his speculation that he can "sell" the merger idea to both the board and shareholders.

o Elucidate have any illegal or unethical acts taken place?

o Have any duties been breached?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M9393935

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