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 BackHOUSE OF REPRESENTATIVES
Committee Report
| Legislation: | HB 160 |
| Sponsor: | Valihura |
| Long Title: | AN ACT TO AMEND TITLE 8 OF THE DELAWARE CODE RELATING TO THE GENERAL CORPORATION LAW. |
| Committee: | JUDICIARY |
| Number of Committee Members: | 8 |
| Date of Report: | 05/17/2007 |
| Committee Vote: | Favorable: | On Its Merits: | Unfavorable: |
| 0 | 7 | 0 |
Purpose of the Bill : This Bill makes some small changes to corporate law under Delaware Code. The changes have to do with voting powers of corporation board of directors, changes in the structure and identification of securities trading markets, election of directors by a plurality vote, agreements of mergers and consolidation, appraisal rights, and interest rates.
Committee Findings: Ed Welch of the Delaware Bar Association Corporate Law Counsel spoke for the bill which was drafted by his organization. He stated that Delaware’s Judiciary and corporate law structure are the best in the country and that other states are constantly trying to replicate our system. He stated that his bill did not introduce any radical changes into Delaware corporate law and were small fine-tuning changes. There was concern among the committee members that the bill would allow the Court of Chancery to change their rules so that they could change the way in which shares are appraised. The concern was that this could possibly give the Court of Chancery a great deal of power to make changes in the current practice of share appraisal, even if it was not the intention of the drafters.
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