Ariella is the controlling shareholder of a corporation that…
Ariella is the controlling shareholder of a corporation that owns a significant subsidiary, SubCo. She frequently directs SubCo to pay large dividends to the parent corporation, Ariella Corp., which owns 95% of SubCo’s shares. SubCo’s minority shareholders are concerned that these dividend payments are detrimental to their interests. In a legal dispute, what standard of review will likely apply to Ariella’s actions regarding the dividend payments?