In the face of opposition from business organizations, the Delaware legislature has deferred consideration, likely until the beginning of 2015, of proposed legislation (discussed in the Corporate and Financial Weekly Digest edition of May 30, 2014) that would effectively overturn the application to stock corporations of the decision in ATP Tour v. Deutscher Tennis Bund (which decision was covered in the Corporate and Financial Weekly Digest edition of May 16, 2014). The Delaware legislature requested that the Delaware State Bar Association, including its Corporation Law Section, continue its examination of the proposed legislation. In ATP Tour v. Deutscher Tennis Bund, the Delaware Supreme Court held fee-shifting bylaws of a Delaware non-stock corporation to be facially valid. As reported, the proposed legislation was approved by the Delaware State Bar Association (which included a proposed effective date of August 1, 2014) and was widely expected to be enacted.
