A specialist in geriatric psychiatry found Sumner Redstone in sound “legal mental capacity” to make a decision, which he did when he removed Philippe Dauman and George Abrams from Viacom’s board. However Dauman’s lawyer has countered the argument saying the evaluation of the psychiatrist was that of a paid medical expert, what is required is an objective examination of Sumner Redstone’s mental capacity.
Sumner Redstone’s spokesman has made it abundantly clear that a psychiatrist had examined Sumner Redstone twice last month and found that the 93-year-old has retained his mental capacity that was needed to remove Philippe Dauman, Viacom’s Chief Executive, from the trust which will eventually control the company.
According to the statement released by Redstone’s spokesman, Dr. James Spar said Redstone had displayed only a “mild degree” of age-related cognitive impairment when he examined the media mogul at his LA home on May 20 and May 24.
Spar had concluded that Redstone had all the “legal mental capacity” when he removed Dauman and George Abrams, another member of Viacom’s board, from Sumner M. Redstone National Amusements Trust on May 20.
The trust will determine the future of Viacom and CBS Corp when Redstone dies or is declared mentally incapacitated.
Incidentally, Redstone is the controlling shareholder of both companies, and his mental state of affairs is the subject of dispute.
Dauman and Abrams have sued to reverse their removal from the trust, arguing that Redstone is under undue influence of his daughter, Shari Redstone. Calling the allegation “absurd”, she has said her father made his own decisions.
Naturally, the outcome of this legal battle will have a bearing on who controls the trust, which in turn will have wide-ranging implications for CBS and Viacom’s shareholders.
According to Redstone’s spokesman, Sumner Redstone had told Spar that he felt Dauman had “done a bad job running Viacom” and that he was upset with Dauman’s decision to sell part of movie studio Paramount Pictures.
Spar, a specialist in geriatric psychiatry, had examined Sumner Redstone numerous times since 2014 said Redstone’s spokesman. Spar is attached to the University of California, Los Angeles.
Dauman’s attorney, Les Fagen, has countered this strategy by saying that Spar’s evaluation of Sumner Redstone was the work of a “paid medical expert”. It does not answer whether Mr. Redstone “had sufficient capacity to make complex decisions impacting the governance of billion dollar publicly held corporations” or “acknowledge that undue influence was exercised”.
According to Fagen, a “complete and objective” examination is what the case demands.
As for the Paramount Pictures deal, Fagen said the deal has not yet materialised so there is nothing to oppose.
He went on to add, “Such a deal if it matures will be the subject of evaluation and review by all board members”.
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