Share on LinkedInShare on LinkedIn

ARTICLE · 26 JUNE 2015

Update On Fee Shifting Or Forum Selection Bylaws

Duane Morris LLP
Duane Morris LLP
Contributor
Explore more from Duane Morris LLP

On June 24, 2015, the Governor of Delaware signed Senate Bill No. 75, which amends the DGCL...

United StatesCorporate/Commercial Law

On June 24, 2015, the Governor of Delaware signed Senate Bill No. 75, which amends the DGCL and (1) prohibits charter or bylaw provisions that would shift the company's fees and costs of an unsuccessful "internal corporate claim" to the stockholder prosecuting that claim, but (2) allows the certificate of incorporation or bylaws to specify that internal corporate claims be brought only in the courts of Delaware. The text of the amendments may be accessed here.

The prohibition on fee shifting provisions was accomplished via amendments to Sections 102(f) and 109(b) of the DGCL, which provide that the certificate of incorporation or the bylaws "may not contain any provision that would impose liability on a stockholder for the attorneys' fees or expenses of the corporation or any other party in connection with an internal corporate claim, as defined in Sec. 115 of this title."

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from