The recent opinion in the Delaware court case ‘Match’ reinforces the local courts’ scrutiny towards controlling shareholders and their mission to protect investors.
In the wake of conflicts of interest concerning controller transactions, senior counsel at the renowned law firm Fried, Frank, Harris, Shriver & Jacobson, Gail Weinstein, stressed that “The Delaware courts are going to continue to have a lot of skepticism when it comes to conflicted controller transactions”. More on this here.
This statement underlines the challenge faced by corporations and law firms in navigating the fine lines of the law, as Delaware courts, often a role model for corporate law jurisdictions, set the tone for the level of vigilance required for high-level, intra-company transactions.
Legal professionals, particularly those operating at the international level, would do well to take note of the Delaware courts’ stance, as their drive to maintain high standards of corporate accountability continues to influence law practices globally.