The Delaware General Assembly recently revised the Delaware General Corporation Law (DGCL) Section 122(18), which expressly authorizes the types of shareholder agreements forbidden under West Palm Beach Firefighters’ Pension Fund v. Moelis & Co. (Moelis). Notably, these changes do not modify directors’ fiduciary duties. Recent revisions to the NVCA model legal documents take a balanced approach in response to these developments.
The Delaware General Assembly recently revised the Delaware General Corporation Law (DGCL) Section 122(18), which expressly authorizes the types of shareholder agreements forbidden under West Palm Beach Firefighters’ Pension Fund v. Moelis & Co. (Moelis). Notably, these changes do not modify directors’ fiduciary duties. Recent revisions to the NVCA model legal documents take a balanced approach in response to these developments.
