Theodora Holding Corp. v. Henderson 257 A.2d 398 (Del.Ch. 1969) Henderson had a controlling interest in a corporation called Dawson Inc. He regularly arranged for Dawson to make large charitable contributions to a specific charity. One year, one of the directors suggested that the charitable gift be made to a charitable corporation supported by Henderson's ex-wife (who also owned a chunk of Dawson stock). In response, Henderson reduced the number of directors on the Board of Dawson, and made the gift to his charity anyway. Henderson's ex-wife (through her holding company), sued, challenging the gift as an inappropriate use of corporate funds. The Trial Court found that the donation was acceptable. The Trial Court found that the donation was not excessive compared to the overall income of the company. The Court looked to the Internal Revenue Code, which said that business donations were limited to 5% of the revenue of the corporation. Since this donation was less than that, it meets the requirement of being reasonable. The Court noted that there were tax benefits to the corporation for making charitable donations. Therefore Court found that there were legitimate reasons to make donations. Due to the Business Judgment Rule, the Court was not going to second guess a business decision unless it was unreasonable, and this seemed reasonable. In addition, the Court wanted to advance the public policy of corporate donations.