Delaware Corporate Law Amendments Headed to Governor’s Desk

Amendments to Delaware corporate law that seek to overturn a landmark court decision invalidating some contracts between corporations and powerful investors are on their way to Gov. John Carney’s (D) desk.

The legislation (S.B. 313) encountered little pushback in its swift journey through the legislature. It passed the House on Thursday by a vote of 34 to 7. The Senate passed the bill June 13 with no debate or opposition.

Critics have objected to the speed with which the amendments developed after a February ruling by Delaware’s Chancery Court invalidated stockholder agreement clauses that grant founders, preferred backers, ...