Look up the word mogul in the dictionary and a picture of Sumner Redstone could legitimately sit beside it and be accurate in every sense. His multi billion dollar empire includes two of the most powerful corporations in modern media, CBS and Viacom, and makes him one of the wealthiest human beings alive. However, control over that empire is increasingly in doubt as Redstone’s health deteriorates which raises the question of how it will be determined if he is no longer fit to lead. Apparently the answer to that question is a two step process involving family members and long time executives as well as a group of three doctors. To rule Redstone incapacitated requires a majority vote of five individuals, among them his daughter, Les Moonves, and Philippe Dauman, who can call upon the expert opinions of three doctors. The team of doctors, drawn from different hospitals, would then rule on his health which will decide if his assets move to an irrevocable trust that would include the voting shares in his various corporations. Due to an ongoing lawsuit from his former partner it is unknown if this arrangement will last, but the two step process is an intriguing method of ensuring any conclusions on his health are well thought out.
See Keach Hagey & Joann S. Lublin, Doctors Have Key Role in Fate of Sumner Redstone’s Company Stakes, Like Viacom, The Wall Street Journal, February 6, 2016.
Special thanks to Joel Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
