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Indeed, parts of the General Corporation Law—in some cases almost the entire statute—have been copied in other jurisdictions. Insolvency; Receivers and Trustees. Citizens United with Corporate Law History, 91 NOTRE DAME L. R. 877, 894 (2016). Compiles important reference material on the modern laws of corporate governance, namely the Model Business Corporation Act (MBCA), the Delaware General Law of Corporations, and the Principles GENERAL CORPORATION LAW Subchapter I Formation § 101 Incorporators; how corporation formed; purposes. Adopted in 1899, the statute has since the early 20th century made Delaware the most important jurisdiction in United States corporate law. 0000053806 00000 n
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��:p�2x�B����WzM��%�� endobj endobj The Delaware Court of Chancery and the The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute governing corporate law in the U.S. state of Delaware. Merger, Consolidation or Conversion. This paper contains a short introduction to VisiLaw and a complete, VisiLaw-marked copy of the Delaware General Corporation Law, including all laws through and including Delaware House Bill No. Morris, Nichols, Arsht & Tunnell LLP Wilmington, Delaware1 INTRODUCTION The Delaware General Assembly undertook an ambitious agenda in 2009 by adopt ing several amendments to the Delaware General Corporation Law (the "DGCL"). 3 Delaware did not adopt a general incorporation statute until 1875. 15 0 obj , 01'6/~_-.j74 SaTION 1. The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute governing corporate law in the U.S. state of Delaware. We then examine the competing arguments scholars endobj 0000074541 00000 n
Subchapter XI. Delaware corporation law. Joel Seligman, A Brief History of Delaware’s General Corporation Law of 1899, 1 DEL. A BRIEF HISTORY OF DELAWARE'S GENERAL CORPORATION LAW OF 1899 By JOEL SELIGMAN* TO INAUGURATE the Delaware Journal of Corporate Law, Wilmington attorney S. Samuel Arsht published "A History of Delaware Corporation Law."' The business and affairs of every corporation organized under this chapter shall be managed by or under the direction of a board of directors, except as may be otherwise provided in this chapter or … Select a preferred format if a few options are available (e.g., PDF or Word). <>stream
In its 2020 session, the Delaware legislature passed a number of amendments to the Delaware General Corporation Law and the Delaware “alternative entity” statutes—the Delaware Limited Liability Company Act, the Delaware Revised Uniform Limited Partnership Act, the Delaware Revised Uniform Partnership Act and the Delaware Statutory Trust Act. Although it is intended to highlight the Bluebook, and not substitute for it, we hope this guide provides a convenient, Delaware-specific resource for the Superior Court’s judicial officers, law clerks, interns, externs, and staff. %PDF-1.4
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5 0 obj Delaware corporation law: the acknowledgement of the separation between the normative duty owed by a director and the enforceable standard that would be used to hold the director accountable if sued for a breach of that duty. 19 0 obj ERNEST L. FOLK, III. Amendments to Delaware’s General Corporation Law Affecting Emergency Bylaws, Indemnification and Other Matters SUMMARY On July 116, 2020, Delaware’s Governor signed House Bill 341 (the “Amendments”), amending key provisions of Delaware’s General Corporation Law (“DGCL”). 0000004378 00000 n
Section 145 of the General Corporation Law authorizes a Delaware corporation to indem nify and advance expenses to directors, officers, employees and agents in a broad variety of circumstances and, in addition, requires such indemnification in a much narrower class Editor's Note: These materials have been prepared solely for informational and educational purposes, do not create an attorney-client relationship with the authors or Morris, Nichols, Arsht & Tunnell LLP, and Analysis of the 1994 Amendments to the Delaware General Corporation Law; Analysis of the 1995 Amendments to the Delaware General Corporation Law; Analysis of the 1996 Amendments to the Delaware General Corporation Law; Analysis of the 1997 Amendments to the Delaware General Corporation Law; Analysis of the 1998 Amendments to the Delaware General Corporation Law; Analysis of the 1999 Amendments to the Delaware General Corporation Law; Analysis of the 2000 Amendments to the Delaware <>
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We first summarize some of the important enabling provisions of the Delaware General Corporation Law (DGCL) that give stockholders broad freedom to set the terms that will govern their corporation, and also identify three mandatory provisions that appear to limit that freedom. <>
371, signed by the Governor on June 16, 2016. Boston: Little, Brown & Company. at 880, 899. Amendments to the Delaware General Corporation Law By Jeffrey R. Wolters, Esq. %PDF-1.6
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endobj x�b```����:� ce`a���@U0!�Q��w�q�����g8,Py������F݆�6 Be it enacted by the Senate and House ofRepreeeniaiioee ofthe Slale of Delasrare in General Assemblymet (with the concurrence of two-thirdsof the members elected to each House of the Gen-eral Assembly.) 9 0 obj �q��T2�s�r��$K���Zد(�ao�6bl�� %�0ZA)���2tPNg/�Vj�c�/�r&�b�N��I�`�"eC��B���J�I�A��|�kl�uu#��n9�&P15I��@̍�m�k��@��b�vZ��fs��GCJ��.�"m��Va�H�2�g���@�?�_�>�_0fV;�(���w#�s� �;�&m���e�D��s��ot.֜�Q2U��it���=������: The governor of Delaware recently signed into law amendments to the Delaware General Corporation Law (DGCL) that will take effect August 1, 2009. organized under the General Corporation Law of Delaware, and by such statement all lawful acts and activities shall be within the purposes of the corporation, except for express limitations, if any;---(4) If the corporation is to be authorized to issue only 1 class of stock, the total number of shares of stock which the corporation shall endobj ��w3R04RI�2�300�4245�Tp�2PI�\�!\��� 0000013332 00000 n
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The Sections of the Delaware Code that pertain to the Division of Corporations are: Title 8 – Corporations; Chapter 1 – General Corporation Law; Chapter 5 – Corporation Franchise Tax; Chapter 6 – Professional Service Corporations; Title 5 – Banking; Chapter 7 – Corporation Law for State Banks and Trust Companies; Title 6 – Commerce and Trade endobj The corporation may designate 1 or more persons as alternate inspectors to replace any inspector who fails to act. <>
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and James D. Honaker, Esq. Pp. Helen Bowers, Ph.D., is Associate Professor of Finance at the University of Delaware’s Department of Finance in the Lerner College of Business and Economics. On July 16, 2020, Delaware adopted new amendments to its public benefit corporation statute, ... 365 and 367 of the Delaware General Corporation Law (DGCL) are described in more detail below: Elimination of Super-Majority Voting Rights. Delaware. DELAWARE JOURNAL OF CORPORATE LAW until after the Civil War. x��� xTE�7~�n���t:['��;�t��FH�@ �@ �kF��JXGED@�Qq�qa������Ψ�ྍ���:c�Q!��U��"�������|O���S{��:u�T��@��,��d��^��#��!w���k9���#p�Wi�w�e���{DQ9�Ο;s�Ǘ�e/Q�y�������T�����5��ED���̞�Vd':o5�g^ڒ��.�nGzOˢ�-�������(�|��D�(r)�->tԭ |�9R?��'o��9�g��G��Vʤ��=A�4��*G��p:D;)�.cϑB^����cn�h%2�6�t-���P=��(��Z(���O�k��He�j�=`��Tw�����y��N����_��.��e껨�Pe�*��t!=���=D����}B��L�Re�>��^z���5�.S_�쥋��7,������FsQ�Ut-8n�v�P�V����h0�������`���г���f�>@_J~�i�>�4�f��t7z�U���f����v���L}���RZ���� =D�Y�GJ��[��K����C���0�g���=.ߧwV�qz����S5�í�8�8Ɗ�5��%MY����-�Y;L/��w��_�X��IWH����v�C�b&7
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Section 170(a) of the Delaware General Corporation Law (DGCL) permits dividends to be declared out of two legally available sources: (1) out of surplus, or (2) if there is no surplus, out of net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year (so-called “nimble Delaware’s preeminence in business law starts with its corporate code (the Delaware General Corporation Law or DGCL) and alternative entity statutes, which are continuously reviewed and enhanced with innovations designed to meet the expanding needs of corporate and financial America. endobj Renewal, Revival, Extension and Restoration of Certificate of Incorporation or Charter. 0000052738 00000 n
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a corporation under this chapter by filing with the Division of Corpora-tions in the Department of State a certificate of incorporation which shall be executed, acknowledged and filed in accordance with section 103 of this title. MEETINGS, ELECTIONS, VOTING, NOTICE Voting rights of stockholders; proxies; limitations[§ 212].-Section 212 of the General Corporation Law deals with voting power of … He was Chair of the Corporation Law Section of the Delaware State Bar Association and its liaison with the Delaware Legislature at … AMENDMENTS TO DELAWARE GENERAL CORPORATION LAW TO HAVE MAJOR IMPACT ON PUBLIC COMPANIES The governor of Delaware recently signed into law amendments to the Delaware General Corporation Law (DGCL) that will take effect August 1, 2009. Contributed by . 0000053143 00000 n
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Several of these amendments will have a major effect on public companies incorporated in Delaware. All of the amendments discussed herein became 0000053905 00000 n
endobj 1972. Corporation Law to the fact that, unlike the corporation laws of some other states, the Delaware statute governs both stock and nonstock corporations and corporations organized for profit as well as nonprofit corporations. PDF Share . Corporation law is often looked upon as an area of the law within the special province of state legislatures and state courts. 0000000876 00000 n
endobj Amendment of Certificate of Incorporation; Changes in Capital and Capital Stock. 0000074162 00000 n
Arsht began with an acknowledgment of recent criticisms of the �̡�ա�9Fj3b�. x����n�8���s�^��u�rצi�E���z�H��-MjIʮ߾3����^la@�x���Ûj�@�f"J`;P��p���w�����]7�-�6�G�7��ٛj�x�N@���% 22 DELAWARE JOURNAL OF CORPORATE LAW [VOL. endobj endobj <>
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AN ACT PROVIDING A GENERAL CORPORATION LAW. Email Facebook LinkedIn Twitter. 2020 Amendments to Delaware's General Corporation Law & Alternative Entity Statutes . Several of these amendments will have a major effect on public companies incorporated in Delaware. 0000030617 00000 n
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8 0 obj xliii, 708. Morris, Nichols, Arsht & Tunnell LLP Wilmington, Delaware1 INTRODUCTION The 2014 amendments to the Delaware General Corporation Law (the ‘‘DGCL’’) implement relatively minor, but important, improvements to existing provisions. Download the document. T\1h`�����J���). Over half o 404 29
3 0 obj Among other things, the amendments— �!� 2 0 obj More than one million business entities take advantage of Delaware's complete package of incorporation services, including modern and flexible corporate laws, our highly-respected Judiciary and legal community, a business-friendly government, and the customer-service-oriented staff of the Division of Corporations. !egy �,�c�! It is a curious document, at once candid and opaque. (a) The corporation shall, in advance of any meeting of stockholders, appoint 1 or more inspectors to act at the meeting and make a written report thereof. provisions of Delaware’s General Corporation Law (“DGCL”). and James D. Honaker, Esq. �{
=�$Z ��`��S�yo�/D/�5 10 0 obj "Management contends that it has complied strictly with the provisions of the new Delaware Corporation Law in changing the by-law date. Why Incorporate in Delaware? <>>>
Subchapter X. According to SDC Platinum, 7 from January 1, 1988, through Decem-* A. Gilchrist Sparks, III, is Of Counsel to Morris, Nichols, Arsht & Tunnell LLP. *,�����dg�2��wZj�+9ə�눱GGE�"��ISYb�_��� f5�,o]]�{g"`f���A�NO�4�d��S�r^���P�@WJf�TPEA���� ��z�ش�
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A�pYzkrr`�~��k=&5xӃ�.o�̚�]q�a�e�����c x�+�r 17 0 obj Louis G. Hering, Melissa A. DiVincenzo, Melanie H. Young and Matthew R. Darby, Morris, Nichols, Arsht & Tunnell 0000012609 00000 n
updates the Superior Court Guide to the Delaware Rules of Legal Citation adopted in July 1997. the General Corporation Law require that every Delaware corporation have a registered office and registered agent in the State for the purpose of accepting service of process and certain other documents, such as demands for inspection of corporate records, spec endobj This amendment to Section 145(c) is consistent with case law holding that a corporation lawfully may agree to provide indemnification to a person who is not a director or officer solely based on that person’s successful defense of a claim covered by Section 145(a) or (b), without an inquiry into whether such person has met the conduct requirements of Section 145(a) or (b). John Carney signed into law amendments to the Dela-ware Limited Liability Company Act (DLLCA) and the Delaware General Corporation Law (DGCL) (collectively, the Acts), which are intended to keep the Acts current and maintain their national pre-eminence. 0000074924 00000 n
1. equitable purposes, contrary to established principles of corporate democracy. HISTORY OF DELAWARE CORPORATION LAW the business of incorporating companies under the new law and representing them in Delaware.8 The new General Corporation Act of 1899 "drew heavily from New Jersey's General Law, then the nation's most popular"" and eliminated the opportunity to secure a special incorporation law. Macey on Corporation Laws Jonathan R. Macey Provides state case law decisions on every important corporation law topic. BOX 1347 - WILMINGTON, DELAWARE - 19899-1347 - T. 302 658 9200 - F. 302 658 3989 www.MorrisNichols.com JULY 2013 Beginning on August 1, 2013, the Delaware General Corporation Law will authorize the formation of public )ETd��,*E�zƗ��r��^T*h����+;��w��)K���ߵu�u2(k�3N_��!N���9dI�"l����ѵ��^|�X�^�\A�Bx�Zn�C��
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7�[�A��������} �R���4&M��,N9�Q�:%5� �lw�]�� e����Q2ت���� 2019 AMENDMENTS TO DELAWARE CORPORATE LAWS The following amendments were enacted in the 2019 Delaware Legislative Session: SB 88 – Amends Title 8 (Delaware General Corporation Law) SB 89 – Amends Chapter 17, Title 6 (Delaware Limited Partnership Act) SB 90 – Amends Chapter 15, Title 6 (Delaware Revised Uniform Partnership Act) 0000032961 00000 n
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Delaware Gov. Delaware Corporate Law Counseling Group DELAWARE UPDATE 1201 NORTH MARKET STREET - P.O. 0000001565 00000 n
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the Corporation Law Section of the Delaware State Bar Association and its liaison with the Delaware Legislature at the time Section 203 was adopted. (e) The conversion of a corporation out of the State of Delaware in accordance with this section and the resulting cessation of its existence as a corporation of this State pursuant to a certificate of conversion to non-Delaware entity shall not be deemed to affect any obligations or liabilities of the corporation incurred prior to such conversion or the personal liability of any person incurred prior to such conversion, nor shall it be deemed to affect the choice of law … 2�&J��^7T� y�"a�
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��m/hM�ˣ�^��`h怎��8m{�:?��P��A�����A����vS�K+? DELAWARE GENERAL CORPORATION LAW By Jeffrey R. Wolters, Esq. The Delaware General Corporation Law-A Commentary and Analysis. Among other things, the Amendments modify existing statutory provisions governing boards of directors’ power to adopt emergency bylaws, address other emergency board powers and effect changes to provisions enabling the indemnification of corporate officers. 0000002931 00000 n
Bloomberg Law ©2019 The Bureau of National Affairs, Inc. 2 2019 Amendments to Delaware's General Corporation Law and Alternative Entity Statutes . Adopted in 1899, the statute has since the early 20th century made Delaware the most important jurisdiction in United States corporate law. By way of example, in coming to embrace the business judgment rule and a … k�3t�~Uc�&�k�4C�[?�Σ��v��ez+��uj�4E�+�бϰ'���6Bo�ћ�G>���{�?D}�6(�AwV���P=4��t1}�~��۩o�i�>Ln� But, while the statute can be copied, the process and philosophy that result in statutory law are a different matter. Jack Markell signed into law important amendments to the Delaware General Corporation Law (DGCL), which are intended to clarify Delaware law in light of the courts’ holdings. <>
Among other things, the Amendments modify 0000049920 00000 n
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(b) A corporation may be incorporated or organized under this 16 0 obj (a) A corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation … ��"�D����Jm���V�0Z1��a�yl����7��&�K��A�9�oJ?U���JC�^�J�c�@o߄�n���ϲXZ�*��I5��F:$�#��7)'�k:�t���;}� e��K�A���,�b�>8�A�#G�v�+��U�$�Q�V�E�����H١���Pg�;L3;/�|A�ׯF_0��W6�S)���̃4�-�.�t%m�_B^n�m��~���W�m�#@,���>E����� 0000002206 00000 n
"Thus," Arsht The first significant post-war change in Delaware's Corporations laws took place in 1875,19 when Article II, Sec-tion 17 of the Constitution of 1831 was amended to give to the legislature the power "to enact a general … �w�cBݺ+*�p�"�;�v� �H�]����q��# A�l8i�M�c� �0{ ���Ȑ+8�qA�Rݼ�>�v�?���^φ� ��������F��M�ɥ�K�v��`^S5F����emR��b����h�vf��"t~z:ލm�Op�����C�\�(�7�f�����cV�c��7{!�{���欮������YD�
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Once the Section 262 of the Delaware General Corporation Law is downloaded you may complete, print out and sign it in almost any editor or by hand.
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(7Ri�@]�:�>�o���#e�`����s\�p�Ly����r'͎�˾��!�zk��B{t�I���;���̨��f~����MŤ�,�XL4�;T8�~��4�)�Va7��U�0H��@� ����A����8gD�=�=Ơ��\��{I�EO�_&"��䔕��=���@�t����H!0�2���Üg��YѓΝ�M_����k��(_k 20170604 Excerpted from: STATE OF DELAWARE, DELAWARE CODE ONLINE, . endobj 0000051889 00000 n
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The Delaware General Corporation Law is the great beneficiary of an unwritten compact between the bar and the state legislature. Chapter 1 . endobj 0000052282 00000 n
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On July 24, 2018, Delaware Gov. Sale of Assets, Dissolution and Winding Up. affected by Delaware Corporation Law. Fee-Shifting Provisions Amendments to Sections 102 and 109 of the DGCL were designed to prohibit fee-shift- GENERAL PROVISIONS RESPECTlNG CORPORATIONS. Subchapter IX.