The Delaware Corporate and Legal Services Blog reports that "all state courts that have considered the enforceability of exclusive forum provisions have upheld them, including courts in California, New York, Illinois and Louisiana." The Blog also reports that predictions organized shareholder opposition would deter companies from adopting them has proven untrue:
... while proxy advisory firms and some institutional investors and investor groups remain generally opposed to these provisions, shareholders more broadly do not appear to have resisted their adoption or punished directors or companies that have adopted them. In light of these developments, and the significant benefits that an exclusive forum bylaw can afford to companies by reducing costs of multi-jurisdictional litigation, companies should give serious consideration to adopting such a bylaw.
A detailed analysis by the blog of this important phenomenon follows.
