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DE SB53

Bill

Status

Introduced

3/30/2017

Primary Sponsor

Colin Bonini

Click for details

Origin

Senate

149th General Assembly

AI Summary

  • Restricts the Court of Chancery's authority to appoint a custodian to dissolve or sell a solvent corporation during corporate deadlock situations

  • 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

  • Mandates a minimum three-year waiting period for alternative remedies to function before the Court can determine that dissolution or sale is necessary

  • Allows immediate dissolution or sale only if all necessary parties stipulate (agree) to such action

  • 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

Committee Referrals

Elections & Government Affairs3/30/2017

Full Bill Text

No bill text available