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Legal Update

Forum Selection Provisions Upheld By Delaware Chancery Court

10 July 2013
Mayer Brown Legal Update
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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