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DE SB53
Bill
Status
3/30/2017
Primary Sponsor
Colin Bonini
Click for details
AI Summary
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Restricts the Court of Chancery's authority to appoint a custodian to dissolve or sell a solvent corporation during corporate deadlock situations
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Requires the Court to first attempt alternative remedies such as appointing a provisional director, tie-breaker vote on the board, amending bylaws, or granting injunctive relief before dissolution or sale can occur
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Mandates a minimum three-year waiting period for alternative remedies to function before the Court can determine that dissolution or sale is necessary
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Allows immediate dissolution or sale only if all necessary parties stipulate (agree) to such action
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Amends Section 226 of Title 8 (Delaware General Corporation Law) to address deficiencies in resolving corporate deadlock situations
Legislative Description
An Act To Amend Title 8 Of The Delaware Code Relatng To The General Corporation Law.
Last Action
Reported Out of Committee (Elections & Government Affairs) in Senate with 1 On Its Merits, 2 Unfavorable
6/30/2017