More companies will prompt shareholders next spring to vote on a measure to protect top executives from damages liability for making ill-informed decisions, following a change in Delaware law.
Delaware changed its General Corporation Law, effective Aug. 1, to allow companies to limit the monetary liability of certain executives, including the CEO and CFO, for duty of care breaches. Previously, the protections were allowed only for board members.
A Nov. 4 lawsuit against Fox Corp. over its adoption of the protection highlights the question of how some shareholders might respond.
Besides Fox, more than 98% of Avid Bioservices Inc. shareholders ...
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