A newly introduced Delaware Senate bill aims to alter the legal framework surrounding corporate transactions by changing the level of judicial scrutiny applied to conflicted transactions. If passed, the legislation could reverse key rulings by the Court of Chancery and the Delaware Supreme Court. Senate Bill 21 suggests lowering the standards used to assess such transactions, redefining who qualifies as a controlling shareholder, and simplifying the criteria for determining the independence and impartiality of directors. Additionally, it proposes to restrict the records available to shareholders in Section 220 suits, thereby providing corporate boards with greater protection against legal challenges.
The proposed legislation has elicited mixed reactions from various stakeholders. You can access further details through the Delaware Business Court Insider.