Typically, when a company is considering a buyout, a special committee will be set up. The committee is comprised of the non-management members of the board of directors.
The duties of the special committee include: conducting and negotiating the buyout transaction on behalf of the company.
What’s more, the special committee may hire its own legal counsel and financial advisor.
Basically, the goal of the special committee is to reduce conflict-of-interest problems. -- tt
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