Gov. Meyer Signs SB21, Revamping Delaware Corporate Law

Delaware Governor Matt Meyer has signed Senate Bill 21 into law, which aims to reinforce the state’s status as a leading jurisdiction for corporate governance. This bipartisan legislation clarifies governance structures to provide businesses with clearer decision-making frameworks and makes it harder for shareholders to sue corporate leaders for conflicts of interest. While supporters argue that the bill is essential for maintaining Delaware's attractiveness to businesses, critics, including corporate attorney Joel Friedlander, warn it undermines judicial oversight and accountability, potentially leading to a decline in corporate governance standards. The changes come amid concerns that recent court rulings were prompting businesses to consider relocating from Delaware, which hosts 2.2 million registered entities and accounts for a significant portion of the state's revenue. The bill has sparked widespread debate, with some viewing it as a necessary update and others as a troubling shift away from judicial accountability. Overall, the legislation reflects a balancing act between corporate interests and shareholder rights in Delaware's corporate landscape.