Delaware House Passes Amendments to Overturn Landmark Decision, Favor Big Shareholders

Jun 21, 2024, 02:06 PM

The Delaware House has passed amendments to the Delaware General Corporation Law (SB 313) by wide margins, aiming to reverse recent disruptive decisions by two members of the Chancery. These amendments, which are now on their way to the governor's desk, seek to overturn a landmark court decision that invalidated certain contracts between corporations and powerful investors. The changes are expected to favor big shareholders and have sparked significant debate among corporate law experts. Some experts express concern that the politicization of Delaware corporate law could negatively impact Delaware’s chartering business. The contentiousness surrounding these amendments is likened to a proposed rule change in a federal agency, highlighting Delaware's critical role in developing corporate law. Billions of dollars are at stake.