Vocabulary Review

Shareholder’s Right of Inspection
Shareholder’s Right of Appraisal

Direct Action
Shareholder’s Derivative Action

Bond
Preferred Stock
Common Stock

Merger
Joint Venture
Stock Split
Reverse Merger
Going Public via Merger

Fiduciary Duty

Piercing the Corporate Veil

Nationality Principle
Territorial Principle
Jurisdiction to Adjudicate
Jurisdiction to Proscribe
Jurisdiction to Enforce

Rule of Reason
Per Se Rule
Tying agreement
Boycott
Quota
Quantitative Restriction
Price Fixing

Discounted Present Value

Direct Suit versus Shareholder’s Derivative Suit – Aktionaerklage
Derivatives
Options
Bonds = Debentures = Anleihen
Stocks = Shares = Aktien
Common stock  – nennnungs Aktienen
versus preferred stock  Vorzugsaktien
convertible wandel Aktien ; wandel Anleihen

appraisal rights – Abfindungsrecht
voting right – Zustimmungsrechte
auction duty
greenmail look up
insider trading Insiderhandel
fiduciary duty treuerhaenderische Pflicht
dividends Dividende
ex dividend

Board of Directors Aufsichtsrat – advisory board; Vorstand
Shareholders Aktionaere

[creditors]
[corporate officers and executives]

Three types of mergers
1) stock for stock
2) cash for assets
3) cash for stock

A subsidiary shell company may also be used. Those are referred to
as triangular mergers.
spinoff

Issues:
*who gets to vote? shareholders? officers? of the merged company? of
the merging company?
*What are the tax consequences? To the merged company? To the
merging company/
*What about outstanding contracts or debts?
Secrecy agreements
Covenants not to compete / non=competition agreements
*What about intellectual property
Trademarks
Copyrights
Patents
Trade secrets

fusion-or-zusammenschluss