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Shareholders Stockholder Agreements

Cadwalader, Wickersham & Taft LLP

Delaware Chancery Court Finds a ~27% Founding Stockholder Is Not a Controller

On July 2, 2024, the Delaware Chancery Court in Sciannella v. AstraZeneca dismissed stockholder claims in connection with the $3 billion merger of Viela Bio and Horizon Therapeutics in 2021. The merger was approved by Viela’s...more

Woodruff Sawyer

My Name’s on the Door: Founder Supremacy in Delaware After Moelis

Woodruff Sawyer on

Founding a successful company is enormously difficult. An oft-cited statistic is that 75% of venture-backed start-ups fail, a percentage that is probably both understated and fails to consider all the companies that never...more

Troutman Pepper

"Market Practice" 2024 DGCL Amendments Become Effective

Troutman Pepper on

The amendments to the Delaware General Corporation Law (DGCL) are effective yesterday, August 1, and will apply retroactively to agreements and contracts that a Delaware corporation entered into, or that a Delaware...more

Kramer Levin Naftalis & Frankel LLP

Delaware Governor Signs Into Law Amendments to Delaware’s General Corporation Law

On July 17, 2024, Delaware Governor John Carney signed into law amendments to the Delaware General Corporation Law (DGCL) from Senate Bill 313 that had sparked considerable controversy within the corporate law and governance...more

Morris James LLP

2024 Amendments to the General Corporation Law of the State of Delaware Go into Effect

Morris James LLP on

The latest amendments (the “Amendments”) to the Delaware General Corporation Law (the “DGCL”) went into effect today, August 1, 2024, to address, among other things, (i) stockholder agreements related to corporate governance;...more

Dickinson Wright

Delaware Corporate Law to Follow Canadian Corporate Law

Dickinson Wright on

Corporate lawyers in Canada tend to follow decisions of the Delaware Courts involving corporate governance and shareholder matters, as decisions of the Delaware Courts are often a bellwether as to how certain aspects of...more

Foley & Lardner LLP

Unlocking the Power of Equity-Based Incentive Compensation: Basics of Nonqualified Stock Options and Stock-Settled Stock...

Foley & Lardner LLP on

This article is the second in our series on equity-based compensation intended to assist employers with answering a common question: What type of equity compensation award is best for our company and our employees?...more

Lewis Roca

Supreme Court Clarifies Shareholder Agreement Valuations for Estate Tax Purposes in Connelly v. United States

Lewis Roca on

Many co-owners of closely held businesses will employ life insurance as a tool for funding the transfer of ownership in the business upon the death or retirement of an owner. In these cases, planning involves the use of...more

Cooley LLP

Delaware SB 313, controversial proposed corporate law amendments, heads to Governor for signature

Cooley LLP on

What’s the latest on SB 313, the proposed amendments to the Delaware General Corporation Law largely designed to address the outcome of the decision in West Palm Beach Firefighters’ Pension Fund v. Moelis & Company? That case...more

Mayer Brown

DGCL Amendments Proposed to Address Recent Delaware Court of Chancery Decisions Affecting Stockholder Agreements, Board Approvals...

Mayer Brown on

Three recent decisions from the Delaware Court of Chancery (the “Court”) have upended long-standing market practice related to, among other matters, stockholder agreements, board approvals of merger agreements and the...more

Cooley LLP

Controversial Delaware legislation breezes through Delaware Senate

Cooley LLP on

Controversy notwithstanding, the proposed amendments to the Delaware General Corporation Law in Senate Bill 313 have reportedly “sailed through” the Delaware Senate and are scheduled to move to the Delaware House this week....more

Cooley LLP

Chancellor McCormick, law professors weigh in on controversy over proposed DGCL amendments

Cooley LLP on

Last month, this PubCo post discussed the recent controversy over proposed amendments to the Delaware General Corporation Law. As noted in the post, the Council of the Corporation Law Section of the Delaware State Bar...more

Cadwalader, Wickersham & Taft LLP

Proposed Amendments to the DGCL Address Issues Raised by Recent Delaware Court Decisions

On March 28, 2024, the Council of the Corporation Law Section of the Delaware State Bar Association approved legislation proposing to amend the Delaware General Corporation Law (“DGCL”) in response to recent Delaware Court of...more

Morgan Lewis

Amendments to DGCL Proposed After Chancery Decisions on M&A Practice and Stockholder Agreements on Corporate Governance Rights

Morgan Lewis on

The Council of the Corporation Law Section of the Delaware State Bar Association has proposed amendments to the Delaware General Corporation Law that, if enacted by the General Assembly, will address issues raised in three...more

Cadwalader, Wickersham & Taft LLP

West Palm Beach Firefighters’ Pension Fund v. Moelis & Co.: An Affirmation of Statutory Board Authority

The Delaware Court of Chancery decided two cases recently that may have a significant impact on future corporate action, in each stressing the need for corporate actors to follow statutory requirements, even when in potential...more

Wilson Sonsini Goodrich & Rosati

Recent Delaware Law Developments and Proposed Legislative Responses

The last several months have marked an extremely busy time in Delaware corporate law, with regard to decisions out of the Delaware courts, proposed legislative responses, and shifting market practices. In recent weeks in...more

Hinckley Allen

Delaware Court of Chancery Invalidates Common Stockholder Governance Rights in Stockholder Agreement

Hinckley Allen on

Key Takeaways - The Delaware Court of Chancery held that stockholder governance rights that restrict the ability of the board of directors to manage or direct the business and affairs of a corporation are facially invalid...more

Troutman Pepper

Delaware Court of Chancery Invalidates Common Governance Rights in Stockholder Agreement

Troutman Pepper on

In West Palm Beach Firefighters’ Pension Fund v. Moelis & Company, the Delaware Court of Chancery invalidated a set of approval rights contained in a stockholder agreement as facially in conflict with Section 141(a) of the...more

Paul Hastings LLP

Delaware Chancery Court Invalidates Moelis Shareholder Agreement

Paul Hastings LLP on

On February 23, 2024, a decision by Vice Chancellor J. Travis Laster in the Delaware Chancery Court invalidated parts of a shareholder agreement between Moelis & Company and its Chairman, Chief Executive Officer and founder,...more

Akin Gump Strauss Hauer & Feld LLP

Delaware Chancery’s Moelis II Decision Provides Cautionary Tale for Boards and Activists

On February 23, 2024, Vice Chancellor Travis Laster of the Delaware Court of Chancery issued his 131-page decision in West Palm Beach Firefighters’ Pension Fund v. Moelis & Co., No. 2023-0309-JTL. The case involved a...more

Wilson Sonsini Goodrich & Rosati

Delaware Court of Chancery Addresses Validity of Stockholder Agreement-Based Restrictions over Corporate Governance Matters

On February 23, 2024, Vice Chancellor J. Travis Laster of the Delaware Court of Chancery issued a decision concluding that some provisions of a stockholder agreement purporting to give a large stockholder various governance...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

What Is A "Joint Stock Association"?

Allen Matkins on

Part 3 of Title 3 of the California Corporations Code is comprised of four statutes governing "joint stock associations".  Oddly, the Corporations Code makes no attempt to define the term and it does not appear in any other...more

Patterson Belknap Webb & Tyler LLP

Commercial Division Renders a Split Decision on a Petition to Stay an Arbitration

Recently, the Commercial Division rendered a split decision on a petition to stay an arbitration in Gol v. TNJ Holdings, Inc., Index No. 652304/2020, Doc. No. 75 (Sup. Ct., NY Cnty. Aug. 13, 2020). Based on an analysis of...more

Morris James LLP

Court Of Chancery Holds Stock Issuance Void

Morris James LLP on

Southpaw Credit Opportunity Master Fund LP v. Roma Restaurant Holdings Inc., C.A. 2017-0059-TMR (February 1, 2018) - When stock is issued in violation of a stockholder agreement, the issuance is “void.” This has great...more

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