Please explain at least with 150 word .... 3. William Shlensky was a minority sh
ID: 1106834 • Letter: P
Question
Please explain at least with 150 word ....
3. William Shlensky was a minority shareholder in the Chicago Cubs basebal team. During the early 1960s the Cubs did not play night games at Wrigley Field. The other major league teams played a number of night games each season. Shlensky sued based on the theory that failure to install lights at Wrigley Field and schedule night games was negligent and represented poor management. Should management's decision be upheld under the business judgment rule?52 52. Shlenshy v. Wrigley, 237 N.E.2d 776, 1968 III. App. LEXIS 1107 (I. App., Dist. 1, Div. 3, 1968).Explanation / Answer
In my opinion, the court will not overturn the right and decision of the management to not install the lights at the field. There can be many reasons behind this decision for example
Installing the light can lower the value of the park
The management may not have sufficient funds to install the lights
There may not be a clear cut indication that installing the lights can improve the revenue generation.
This case represents that basic logic that the business decisions are the sole responsibilities of the management and no interference should be done in this regard only because a stakeholder thinks that the policy adopted by the management may be efficient and facilitate proper return. These decisions are the sole discretion of the management.
The court may illustrate that there is no clear evidence that the management is involved in any act of illegality, fraud or a conflict of interest and thus the ruling must be in favour of the management.
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