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Shareholders General Corporation Law

Venable LLP

Maryland Remains the Favored Jurisdiction for REITs

Venable LLP on

Amid continuing reports of corporations reincorporating from Delaware, including Simon Property Group reincorporating from Delaware to Indiana, the location of its headquarters, and Texas and Nevada recently amending their...more

Venable LLP

Changes to Maryland General Corporation Law Effective October 1, 2025

Venable LLP on

During its 2025 session, the General Assembly of Maryland approved House Bill 1171, amending several provisions of the Maryland General Corporation Law (the “MGCL”). House Bill 1171 was signed by Governor Moore and is now...more

Fenwick & West LLP

Nevada Enacts Major Changes to Entice Corporations

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Nevada advanced its quest to challenge Delaware as the go-to state for incorporation on May 30, 2025, when Gov. Joe Lombardo signed significant amendments to the Nevada Revised Statutes that govern corporations there....more

Allen Matkins

So You Want To Sue "The Board", Is That Even Possible?

Allen Matkins on

A little more than eight years ago, I wrote about U.S. District Court Judge Ronald M. Whyte's ruling that a corporate board of directors lacks the capacity of being sued.  Theta Chi Fraternity, Inc. v. Leland Stanford Junior...more

Allen Matkins

Delaware Court Awards Attorneys Nearly $18,000/Hour For Frustrating The Will Of The Stockholders

Allen Matkins on

Although parties in American litigation usually are responsible for paying their own attorneys' fees, there are many exceptions.  One of those exceptions is when someone confers a "common benefit".   A common benefit may, for...more

Allen Matkins

What If A Creditor Refuses To Just Take The Money?

Allen Matkins on

When a California corporation has been completely wound up without court proceedings, a majority of the directors then in office must sign and verify a Certificate of Dissolution which must be filed with the California...more

Allen Matkins

When Dismissing A Case Violates Due Process

Allen Matkins on

When a shareholder sues derivatively, the shareholder is seeking relief not for itself, but for the corporation.  Therefore, it should be expected that the shareholder is not free to compromise or dismiss the suit absent...more

Allen Matkins

Just What Are The Duties Of A Controlling Shareholder And How Should Claims Of Breach Be Brought?

Allen Matkins on

In a recent post, Professor Stephen Bainbridge discusses the question of when a controlling shareholder owes fiduciary duties to minority shareholders.  Knowing when controlling shareholder owes fiduciary duties is one thing,...more

Allen Matkins

Does Amending A Shareholders Agreement Require Qualification Under The California Corporate Securities Law?

Allen Matkins on

A significant amount of background is required to answer the question of whether amending a shareholders agreement is subject to qualification under the California Corporate Securities Law.  As an initial matter, the CSL...more

Allen Matkins

Professor Bainbridge Queries Whether SB 313 Eviscerates Omnicare, But Does That Question Have Any Relevance To California...

Allen Matkins on

Delaware practitioners and legal scholars are digesting the implications of SB 313 which adds a new Section 122(18) to the Delaware General Corporation.  According to the bill's synopsis, this new provision...more

Allen Matkins

Israel Headquarted Company Approves Move From Delaware To Nevada

Allen Matkins on

As the debate continues regarding DExit, I have been on the lookout for companies making the move from Delaware to Nevada.  Recently, I came across this information statement filed by Viewbix Inc., a digital advertising...more

Wilson Sonsini Goodrich & Rosati

Significant Amendments to the Delaware General Corporation Law Are Set to Become Effective

On August 1, 2024, an extensive and important set of amendments to the Delaware General Corporation Law (the DGCL) will become effective. The amendments, which will apply both prospectively and retrospectively, were largely...more

Allen Matkins

Is A Notitia Congregationis Valid In California?

Allen Matkins on

California is a very linguistically diverse state with an estimated 200 plus different languages being spoken.  Within my own family, English is not the primary language spoken at home by any of my grandchildren.  Yet, the...more

Allen Matkins

Directors Removing Directors

Allen Matkins on

Seven years ago, I addressed the question of whether the board of directors of a California corporation could remove a fellow director...more

Allen Matkins

Can Shareholders Elect Corporate Officers?

Allen Matkins on

The classic model of corporate governance is that the board of directors appoints and removes the principal corporate officers.  This is consistent with the general principle that the business and affairs of a corporation...more

Allen Matkins

Knowingly Offering A False Annual Statement For Filing With The Secretary Of State Is A Felony

Allen Matkins on

The Statement of Information required pursuant to California Corporations Code Section 1502 is not required to be signed under penalty of perjury.  However, the statute does require that the corporation (not the individual...more

Allen Matkins

Does Revlon Make Nevada Tense?

Allen Matkins on

In Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc., 506 A.2d 173, 182 (1986), the Delaware Supreme Court famously held that when the sale of a corporation becomes inevitable,  the board of directors' duty changed from the...more

Allen Matkins

Are Recent Delaware Decisions Causing Corporations To Look For The Exit?

Allen Matkins on

Delaware's website boldly asserts "The DGCL [Delaware General Corporation Law] offers predictability and stability."  I have somewhat waggishly observed, however, that you can read the DGCL cover to cover and still no very...more

Allen Matkins

How Would Nevada Decide Moelis?

Allen Matkins on

In West Palm Beach Firefighters Pension Fund v. Moelis & Co.,  2024 WL 747180, at *2 (Del. Ch. Feb. 23, 2024),  Vice Chancellor J. Travis Laster ruled that Section 141(a) of the Delaware General Corporation Law trumps most of...more

Allen Matkins

When A California Corporation Converts To A California Limited Liability Company, What Happens To Its Nevada Business License?

Allen Matkins on

NRS 107.028(1)(d) requires that a trustee under a deed of trust be a "domestic or foreign entity which holds a current state business license issued by the Secretary of State pursuant to chapter 76 of NRS".   In Mahban v....more

Allen Matkins

Not Every California Corporation Is Governed By The California General Corporation Law

Allen Matkins on

The California General Corporation Law is part of the California Corporations Code, but not every corporation incorporated in California is formed or governed by the General Corporation Law.   In fact, the Corporations Code...more

Allen Matkins

What Egregious Error Have Courts Made Nearly 9,000 Times (And Counting)?

Allen Matkins on

In a recently published article, Professors Samantha J. Prince & Joshua P. Fershée focus on the propensity to conflate corporations with limited liability companies...more

Allen Matkins

Does Delaware Discriminate Against The Deaf And Hearing Impaired?

Allen Matkins on

I recently addressed the question of whether the exchange of emails might constitute a corporate board meeting.  Recently, Professor Stephen Bainbridge pointed out that he discussed this question more than two decades ago.   ...more

Allen Matkins

Is There Any Repose For A Dissolved Nevada Corporation?

Allen Matkins on

NRS 78.585 bars any cause of action against a dissolved Nevada corporation or its directors, officers, or stockholders if it is commenced within...more

Allen Matkins

Reverse Stock Splits And The California Corporate Securities Law

Allen Matkins on

Meredith Ervine recently wrote about reverse stock splits and Nasdaq listed issuers.  A reverse stock split is the "go to" solution for many listed issuers whose share prices fall below the minimum continued stock exchange...more

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