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Bylaws

Venable LLP

Periodic Review of Closed-End Fund Bylaws

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In light of recent attention to closed-end fund governance in general and to bylaws in particular, we offer this brief reminder of the value of a periodic review of the bylaws of Maryland corporations and statutory trusts...more

Morris James LLP

Chancery Finds That Advancement Plaintiff was Employed by a Subsidiary and Entitled to Advancement

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Centrella v. Avantor, Inc., C.A. No. 2022-0876-NAC (Del. Ch. July 1, 2024) - It is common for Delaware corporations to provide advancement rights to their officers and directors. In this post-trial decision from the Court...more

Venable LLP

Protecting REITs under Maryland Law

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Over the past decade, Maryland-incorporated real estate investment trusts ("REITs") have been under increasing pressure to eliminate or reduce defenses against unsolicited takeovers. Boards have been declassified, directors...more

BakerHostetler

The Delaware Supreme Court Provides Clarity for Advance Notice Bylaws

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A recent monumental decision of the Delaware Supreme Court (Court), dubbed a “first-of-it-kind” ruling by Bloomberg Law, provides clarity for both public companies looking to amend their bylaws and shareholder activists who...more

Bowditch & Dewey

The Legal Battle Over Milton’s Noncompliance with the MBTA Communities Act – What Towns Need to Know

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On October 7, 2024, the Supreme Judicial Court (“SJC”) heard oral arguments from the Attorney General’s Office and the Town of Milton regarding the Town of Milton’s noncompliance with the so-called MBTA Communities Act. For...more

Faegre Drinker Biddle & Reath LLP

Advance Notice Bylaws and Proxy Contests: A Balancing Act

What Exactly Are Advance Notice Bylaws? Delaware General Corporation Law (DGCL) Section 211(d) provides the statutory framework for advance notice bylaws. Advance notice bylaws are an optional set of bylaw provisions...more

Bowditch & Dewey

The Commonwealth Needs Solar Power: After Kearsarge and Tracer Lane, Massachusetts Cities and Towns Consider the Limits of Local...

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In its unpublished M.A.C. Rule 23.0 decision affirming the Land Court’s ruling, the Massachusetts Appeals Court concluded in Kearsarge Walpole LLC vs. Zoning Bd. of Appeals of Walpole, Mass. App. Ct., No. 23-P-128 (2024) that...more

Carey Olsen

An overview of Cayman Islands foundation companies

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A foundation company is a vehicle unique to the Cayman Islands. It has features akin to a company, retaining separate legal personality and limited liability, whilst functioning in a manner similar to a civil law foundation...more

Skadden, Arps, Slate, Meagher & Flom LLP

Inside the Courts – An Update From Skadden Securities Litigators - October 2024

Ninth Circuit Affirms Dismissal of Insider Trading Claims Against Satellite Operator Investors Based on Stock Sales After FCC Chairman Vote - In re Silver Lake Grp., LLC Sec. Litig. (9th Cir. July 24, 2024) What to...more

Cooley LLP

Delaware’s Latest on Bylaws: 5 Lessons Learned

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I was talking with Cooley partner Brad Goldberg about how he has been helping quite a few companies revisit their bylaws in response to the Delaware Supreme Court’s recent Kellner decision....more

Maynard Nexsen

Delaware Supreme Court’s Kellner v. AIM Immunotech Inc. Decision Elucidates Advance Notice Bylaws Standards

Maynard Nexsen on

On July 11, 2024, the Delaware Supreme Court (the “Court”) issued a landmark ruling in Kellner v. AIM Immunotech Inc., providing crucial guidance on the standards for evaluating challenges to advance notice bylaws. This...more

Marshall Dennehey

Supreme Court of New Jersey Holds that Indemnification Can Exist in First-Party Claims, With the Appropriate Language

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For many years, the rule of law governing claims for contractual indemnification in New Jersey has been well-established under the so-called “Azurak” rule, which requires that, in order for a party to be indemnified for its...more

Troutman Pepper

Delaware Supreme Court Strikes Down Unintelligible and Inequitable Bylaws

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In Kellner v. AIM ImmunoTech Inc., the Delaware Supreme Court affirmed in part and reversed in part the Delaware Court of Chancery’s closely watched ruling, which invalidated several provisions in the bylaws of AIM ImmunoTech...more

Cooley LLP

Delaware Supreme Court considers advance notice bylaws

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In this recent case, Kellner v. AIM ImmunoTech, the Delaware Supreme Court articulated a two-part framework for judicial consideration of advance notice bylaws in the event of a challenge to their adoption, amendment or...more

Morgan Lewis

Delaware Supreme Court Raises the Bar on Plaintiffs’ Firms Extracting Fees for Challenges to Advance Notice Bylaws

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The Delaware Supreme Court on July 11 partially reversed the Delaware Court of Chancery decision in Kellner v. AIM ImmunoTech, which had held that certain advance notice bylaw provisions were “facially invalid,” holding...more

Ward and Smith, P.A.

I Still Have Not Found What I Am Looking For: Finding the Right Records

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Although a nonprofit corporation does not have to file an annual report, its members do have statutory inspection rights similar to those of the shareholders of a business corporation. Rarely, however, do members or the board...more

Venable LLP

Delaware Supreme Court Strikes Down Advance Notice Bylaws as "Unintelligible" or Adoption with an Improper Purpose on a "Cloudy...

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In a much-anticipated decision, the Delaware Supreme Court echoed the Court of Chancery's pronouncement that advance notice bylaws adopted amid an approaching proxy contest are reviewed through the lens of enhanced judicial...more

Woodruff Sawyer

The Plaintiffs' Bar’s Shiny New Object Loses Its Luster: Advance Notice Bylaw Provisions

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In 2021, the Securities and Exchange Commission (SEC) adopted final rules that made it easier for shareholders, including activists who may not have the company’s long-term interests in mind, to put dissident directors on a...more

Skadden, Arps, Slate, Meagher & Flom LLP

Delaware Supreme Court Clarifies Standards Applicable To Advance Notice Bylaws

On July 11, 2024, the Supreme Court of Delaware, en banc, issued an important decision in Kellner v. AIM Immunotech Inc.,1 which arose from a challenge in the Delaware Court of Chancery involving advance notice bylaws that...more

Bowditch & Dewey

Abutter’s Diminution in Property Value Argument Found Insufficient to Confer Standing to Challenge Special Permit for Research and...

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In Pobeda RT II, LLC v. Zoning Bd. of Appeals of Watertown, 104 Mass. App. Ct. 250 (2024), the Court of Appeals confirmed the longstanding holding that “diminution in property value is an insufficient basis for standing...more

Adams and Reese LLP

Document Organization is Critical for Corporations and LLCs

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The 30th U.S. President Calvin Coolidge, when he was not being “Silent Cal,” once said “the only difference between a mob and a trained army is organization.” The former President’s quote of the criticality of organization...more

Stinson LLP

Tackling the Minnesota State High School League’s Transfer Eligibility Rules

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Each year, several thousand students transfer between high schools in Minnesota. Some of these transfer students participated in athletics or fine arts at their prior schools and wish to continue those endeavors at their new...more

Allen Matkins

Don't Be Caught Inquorate! Some Key, But Subtle, Differences In California's And Nevada's Board Quorum Requirements

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California Corporations Code Section 307(a)(7) provides that a "majority of the authorized number of directors constitutes a quorum for the transaction of business".  Thus, if the authorized number of directors is 7 and there...more

Goulston & Storrs PC

Lions and Turtles and Bearded Dragons, Oh My!

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Fleming v. Zoning Bd. of Appeals of Oxford, 103 Mass. App. Ct. 1128 (2024) In Fleming, the Massachusetts Appeals Court grappled with some scaley zoning issues arising out of personal ownership of 460 reptiles. In this...more

Morgan Lewis

Plaintiffs’ Firms Are Once Again Targeting Advance Notice Bylaws

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Stockholder plaintiffs’ law firms have recently filed several virtually identical complaints in the Delaware Court of Chancery challenging often used public company advance notice bylaws as facially invalid. Against this...more

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