In California, corporations range in many different sizes and structures. Regardless of their size, all corporations are required to follow certain guidelines and regulations. A failure to do so may expose the company or its representatives to liability for their actions.
The former CEO and three additional former executives of a California corporation are seeking to block the sale of the company to Disney. Disney is seeking to purchase the company for $500 million to increase their standing in the YouTube channel market. Shareholders are planning to vote on the proposed sale on April 15, but the former executives are seeking a temporary restraining order to postpone the vote. They are basing their request on the allegation that documents provided to shareholders regarding the vote did not mention pending litigation. The business litigation in question concerns directors of the company issuing shares to themselves to minimize the former CEO's interest in the company.