The Delaware Court of Chancery recently upheld the use of forum selection bylaws by boards of Delaware corporations seeking to control the growth of multi-jurisdiction lawsuits involving derivative actions or internal corporate matters. Forum selection provisions are located either in a corporation’s charter or bylaws and designate specific courts as the exclusive forum where certain types of litigation may be brought. The decision was the first time a Delaware court addressed the validity of these provisions and came as welcome news to many Delaware corporations and their management.
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