Moelis Arguments Threaten Founder Rights in Top Business Court

An appeals court is poised to resolve more than a year of debate over whether a judge went too far in invalidating a billionaire founder’s veto rights over board decisions.

Corporate attorneys say they want to see how Delaware’s courts will interpret a swiftly drafted law that effectively mooted a 2024 decision striking down most of the pact between Ken Moelis and his investment bank, Moelis & Co. While clients seeking stability found reassurance in the legislative moves to restore balance between controllers and minority shareholders, the Delaware Supreme Court’s opinion on the Moelis decision could signal what the law ...