Delaware Amends its General Corporation Law to Authorize Exclusive Forum Provisions and Prohibit Fee-Shifting Provisions
25 June 2015
Mayer Brown Legal Update
Recently enacted amendments to the Delaware General Corporation Law address, among other topics, two types of charter or bylaw provisions that some companies have adopted in an effort to control in which courts internal corporate claims may be brought or to compel unsuccessful plaintiffs in internal corporate claims to pay the attorneys’ fees and costs of the company or any other party. The amendments authorize provisions that specify Delaware as the exclusive forum for internal corporate claims, but ban fee-shifting provisions. The amendments become effective on August 1, 2015.