Delaware’s Top Court Mulls ‘Draconian’ Bylaws in AES Appeal (1)

The Delaware Supreme Court is considering when advance notice bylaws are so “unreasonable or draconian” that they have a deterrent effect on all stockholders seeking to nominate board candidates.

“Isn’t there a problem that there would never be an opportunity for a court to review such a bylaw?” Justice Gary F. Traynor asked Wednesday in oral arguments over whether the Delaware Chancery Court prematurely dismissed challenges to advance notice bylaws adopted by AES Corp. and Owens Corning.

Stockholders of AES, an electric power distributor, and Owens Corning, which produces building materials, appealed the dismissal of their lawsuits challenging advance notice ...