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California Delaware General Corporation Law Corporate Governance

Allen Matkins

Professor Bainbridge Queries Whether SB 313 Eviscerates Omnicare, But Does That Question Have Any Relevance To California...

Allen Matkins on

Delaware practitioners and legal scholars are digesting the implications of SB 313 which adds a new Section 122(18) to the Delaware General Corporation.  According to the bill's synopsis, this new provision...more

Wilson Sonsini Goodrich & Rosati

Delaware's Status as the Favored Corporate Home: Reflections and Considerations

In recent months, a conversation has emerged as to whether Delaware should remain the favored state of incorporation for business entities. Indeed, many of our clients have asked us whether they should remain in Delaware or...more

Allen Matkins

Can "New Wave" Stockholder Agreements Catch A Wave In California?

Allen Matkins on

Professor Stephen Bainbridge recently commented on a decision by Vice Chancellor J. Travis Laster finding that Section 141(a) of the Delaware General Corporation Law trumps most of the provisions of a so-called "new wave"...more

Allen Matkins

Can The California Attorney General Enforce The Inspection Rights Of Stockholders And Directors Of Delaware Corporations?

Allen Matkins on

The California General Corporation Law expectedly grants inspection rights to shareholders and directors of California corporations.  Unexpectedly (at least to practitioners outside California), the GCL extends those rights...more

Allen Matkins

Is The General Counsel Ipso Facto A Corporate Officer?

Allen Matkins on

One difficulty of answering the question of whether a general counsel is a corporate officer is that the California General Corporation Law does not define "officer".  Corporations Code Section 312(a) requires a corporation...more

Allen Matkins

May Directors Vote By Proxy?

Allen Matkins on

Neither California's nor Delaware's General Corporation Law expressly prohibits directors from being represented by proxy at board meetings.   However, it appears to have been well settled in Delaware since at least 1915 that...more

Allen Matkins

Does California Require "Reasonable Care" In A Board's Selection Of An Expert?

Allen Matkins on

Professor Stephen Bainbridge recently tackled the question of whether the business judgment rule applies to a corporate board's selection of an expert.   Section 141(e) of the Delaware General Corporation Law fully protects a...more

Allen Matkins

Nevada Enacts Changes To Stockholder Inspection Statute

Allen Matkins on

As mentioned earlier this week, Nevada's regular legislative session ended on June 6.  During the session, the legislature enacted, and the Governor approved,  AB 126  which makes numerous changes to Nevada's business entity...more

Allen Matkins

Is The Right To Sue Officers A Power, Preference Or Special Right?

Allen Matkins on

Earlier this month the Electrical Workers Pension Fund, Local 103, I.B.E.W. filed a verified class action complaint in the Delaware Court of Chancery against Fox Corporation.  (Case No. 2022-1007-MTZ (filed Nov. 4, 2022)). ...more

Allen Matkins

California Bill Aims To End The Asymmetry Of Corporate Time

Allen Matkins on

For the last eight years, Delaware corporations have been been able to escape the "asymmetry of time" through either ratifying past corporate acts or obtaining validation from the Delaware Court of Chancery.  Del. Gen. Corp....more

Allen Matkins

Making Distributions - No Need To Mind The GAAP

Allen Matkins on

UCLA Law School Professor Stephen Bainbridge recently commented Vice Chancellor Glasscock's recent memorandum opinion in In re The Chemours Co. Deriv. Litig., (Del. Ch. Case No. 2020-0786-SG, Nov. 1, 2021).  Professor...more

Allen Matkins

Study Throws Wet Blanket On Other Constituency Statutes

Allen Matkins on

An "other constituency statute" permit, but do not require, boards of directors to consider non-shareholder interests (such as the interests of employees, the environment, et cetera) when making decisions.  California and...more

Allen Matkins

Court Orders Discovery In Derivative Action Challenging Racial Diversity

Allen Matkins on

Last year, the City of Pontiac General Employees' Retirement System filed a derivative suit against the Board of Directors and Chief Executive Officer of Cisco Systems, Inc.  The gist of the complaint was that the "Defendants...more

Allen Matkins

Court Finds No Personal Jurisdiction Over Foreign Director Of California Corporation

Allen Matkins on

Frank Hemm, a citizen of Switzerland, served on the board of directors of Rodo Medical, Inc., a California corporation.  He was also an executive of Institut Straumann AG, a Swiss corporation and investor in Rodo.   Mr. Hemm...more

Allen Matkins

Why California Law Applies To Dividends Made By A Delaware Corporation (And Not To Some California Corporations)

Allen Matkins on

Corporations incorporated under California's General Corporation Law are subject to the limitations on distributions set forth in Chapter 5 of that law.   A foreign corporation may also be subject to Chapter 5 by virtue of...more

Allen Matkins

You Won't Find This "Bedrock" Delaware Doctrine In California Case Law (At Least Not Yet)

Allen Matkins on

In Orzeck v. Englehart, 195 A.2d  375 (Del. 1963), the Delaware Supreme Court adopted what the Court of Chancery subsequently described as a "bedrock" doctrine of Delaware corporate law - the "Doctrine of Independent Legal...more

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