Governor Matt Meyer of Delaware recently signed Senate Bill 21 into law, aimed at enhancing corporate governance structures in the state. The bipartisan-supported bill clarifies key governance frameworks to uphold Delaware’s reputation for fair and efficient corporate oversight. Governor Meyer stated that Delaware is the best place globally to incorporate a business, and Senate Bill 21 will ensure clarity and predictability while balancing stockholders’ interests and corporate boards.
Developed with input from corporate leaders and legal experts, the legislation addresses concerns about decision-making consistency in businesses. However, corporate attorney Joel Friedlander criticized the bill, calling it a radical overhaul of Delaware’s corporate law. Friedlander argued that the bill weakens judicial oversight by reducing the role of stockholder litigation.
Delaware hosts 2.2 million registered corporate entities and incorporated 81% of U.S. IPOs last year. The state’s revenue from corporate franchise fees, approximately $2.2 billion annually, supports various state priorities like education, affordable housing, and infrastructure. Governor Meyer emphasized the importance of this revenue in funding essential services for the state.
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