A bill aiming to reform Delaware’s corporate governance laws has passed the Senate but faces criticism as it heads to the House. Senate Bill 21 is designed to clarify business laws to keep corporations in the state and maintain Delaware’s reputation as the corporate capital of America. However, critics, including corporate attorney Joel Friedlander, argue that the bill could limit shareholder rights and reduce judicial oversight, potentially harming investors and state revenue.
Friedlander claims that the bill is a radical overhaul that would eliminate judicial oversight and stockholder litigation, impacting the local economy and potentially driving corporations out of Delaware. Supporters, like Gov. Matt Meyer, argue that the legislation is necessary to attract and retain businesses in the state. The bill now moves to the House Judiciary Committee, where amendments are being considered to address concerns.
Opponents are also working on alternative legislation to provide a compromise. As the debate continues, the future of Delaware’s corporate governance laws remains uncertain.
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