Delaware Tells Companies: ‘Let’s Stay Together’
Key Points While there have been some vocal critics of Delaware corporations law, few major companies have reincorporated in other states, and Delaware incorporation continues to offer substantial benefits to companies and stockholders. Recent amendments to Delaware’s corporations law create safe harbors for companies, controlling stockholders, directors and officers involved in transactions where there are […]
Posted by Edward B. Micheletti, and Jenness E. Parker, Skadden, Arps, Slate, Meagher & Flom LLP, on Friday, May 23, 2025
Editor's Note:
Edward B. Micheletti and Jenness E. Parker are Partners at Skadden, Arps, Slate, Meagher & Flom LLP. This post is based on their Skadden memorandum, and is part of the Delaware law series; links to other posts in the series are available here.
Key Points
- While there have been some vocal critics of Delaware corporations law, few major companies have reincorporated in other states, and Delaware incorporation continues to offer substantial benefits to companies and stockholders.
- Recent amendments to Delaware’s corporations law create safe harbors for companies, controlling stockholders, directors and officers involved in transactions where there are possible conflicts of interest if they follow newly clarified procedural steps.
- The statutory changes provide greater clarity and certainty and should help reduce litigation over transactions.
