Delaware Ratification (Right of Way)
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FAQ
Section 204 of the DGCL provides the procedure by which corporations may ratify a defective corporate act that is otherwise void or voidable due to a failure to properly authorize these acts, such as officer or director appointments or stock issuances.
Section 203 of the Delaware General Corporation Law, or DGCL, is a Delaware statute that prevents shareholders (along with their affiliates and associates) from engaging in a tender or exchange offer for a period of three years after buying more than 15 percent of the company's stock unless certain criteria are met.
The 2023 amendments reduce the voting standard required under Section 390 of the DGCL to domesticate, transfer, or continue Delaware corporations to foreign jurisdictions from all of the outstanding shares of the corporation to a majority in voting power.
Section 204(c)(2) of the DGCL was amended to clarify that the determination as to whether any shares of valid stock are outstanding and entitled to vote on the ratification must be made at the time the board adopts the resolutions approving the defective corporate act.
The 2023 DGCL amendments include a new exception to the stockholder approval requirement of Section 271 that relates specifically to the sale, lease, or exchange of property or assets that secure a mortgage or are pledged to a third party, under certain conditions.
Section 262 of the DGCL has been amended to (i) expand the transactions pursuant to which statutory appraisal rights are available in order to include transfers, domestications, and continuances and (ii) require that withdrawal of a demand for appraisal rights be made within 60 days following the effective date of the ...
