Delaware Senate Passes Controversial Corporate Law Overhaul

Delaware's Senate unanimously passed a controversial bill, Senate Bill 21, aimed at amending corporate laws to protect controlling stockholders from certain lawsuits. Supporters, including Governor Matt Meyer, argue the bill will provide predictability for businesses and help retain Delaware's status as the top state for corporate incorporation, governing around 60% of Fortune 500 companies. However, critics warn it could empower wealthy stockholders at the expense of ordinary investors, raising concerns about the potential negative impact on pensions and shareholder rights. The bill defines 'controlling shareholders' and lowers the requirements for corporate actions, while also restricting the timeframe for legal access to company records. The legislation, which has sparked significant debate, will now proceed to the Delaware House for further consideration. If passed, it could set a precedent for corporate governance across the nation.