Moelis Case Hangs On Top Court’s Take on ‘Void vs. Voidable’ (1)

A challenge to billionaire Ken Moelis’ pact with the investment bank he founded now hinges on what Delaware’s top court deems permissible in deals with controlling shareholders.

The two-year old dispute catalyzed legal and political scrutiny of Delaware’s corporate primacy. It’s one of a slate of arguments before the Delaware Supreme Court this year concerning the balance between powerful controllers and minority shareholders amid threats to the state’s place in America’s corporate firmament from Nevada and Texas.

Extensive approval rights that gave Moelis the last word on the leadership, litigation strategy, budget, business plans, and charter, along with dividend ...