Stockholder Pacts Get New Guidance 3 Months After Moelis Ruling

Corporate governance pacts handing the reins to company insiders came into sharper focus Tuesday when the Delaware judge who upended the popular practice issued a follow-up ruling in another case.

Vice Chancellor J. Travis Laster struck down portions of a stockholder agreement conferring extensive veto rights on a BRP Group Inc. co-founder, saying the contract closely resembled an accord involving Moelis & Co. that he largely struck down in February. Similar pacts represent a key tool for founders seeking to cement long-term control, boards trying to defuse proxy fights, and venture capital firms leading public listings.

The earlier landmark decision ...