698 A.2d 959 (Del. Ch. 1996)

In re Caremark International Inc. Derivative Litigation

Caremark supplied the canonical formulation of board oversight: directors may face liability where they utterly fail to attempt to establish a reasonable information and reporting system.

Holding

Caremark supplied the canonical formulation of board oversight: directors may face liability where they utterly fail to attempt to establish a reasonable information and reporting system.

Issues

duty of oversightcompliance systemsderivative suits and fiduciary duty