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Delaware Court Invalidates Common Shareholder Agreement Provisions
Jed Weiner Jed Weiner

Delaware Court Invalidates Common Shareholder Agreement Provisions

A recent Delaware court ruling invalidated provisions regularly included in shareholder agreements. In West Palm Beach Firefighters’ Pension Fund v. Moelis & Co., No. 2023-0309-JTL (Del. Ch. Feb. 23, 2024), the Delaware Court of Chancery ruled that most of the governance control provisions in a stockholder agreement in favor of a stockholder were invalid under Delaware corporate law.

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