Fee shifting moves forward in Delaware

The annual comprehensive corporation law amendment bill has been introduced in the Delaware Senate. As expected it contains the ban on fee shifting bylaws. 

The US Chamber of Commerce sent along this comment by email:

"This proposed fee-shifting bill does little to address the well-documented, longstanding problem of abusive merger-and-acquisition litigation in Delaware. In addition, it removes a useful tool for protecting innocent shareholders against these frivolous lawsuits with no new protections. 

“Helping trial lawyers instead of shareholders calls into question Delaware’s commitment to maintaining the balanced legal system that until now has been the hallmark of its corporate franchise.”

I'm in complete agreement, as detailed in may prior posts:

The case for allowing fee shifting bylaws as a privately ordered ...

 

Nov 17, 2014 ... I had been planning on writing a law review article on fee shifting bylaws, but I suspect that events will overtake the inevitably lengthy ...

www.professorbainbridge.com/.../the-case-for-allowing-fee-shifting-bylaws- as-a-privately-ordered-solution-to-the-shareholder-litigat.html

 

Delaware's Decision: Viewing fee shifting bylaws through a public ...   Nov 18, 2014 ... (2) What's in the best interest of the key interest group that would be affected by fee shifting bylaws? As we'll see, I think those questions have ... www.professorbainbridge.com/.../delawares-decision-viewing-fee-shifting- bylaws-through-a-public-choice-lens.html