UCLA Law School Professor Stephen Bainbridge recently commented Vice Chancellor Glasscock's recent memorandum opinion in In re The Chemours Co. Deriv. Litig., (Del. Ch. Case No. 2020-0786-SG, Nov. 1, 2021). Professor Bainbridge notes that the Chemours case provides some guidance on how to boards of directors should make valuation decisions in determining whether a dividend may be paid under Delaware law. He notes that state corporate laws generally does not require adherence to Generally Accepted Accounting Principles (GAAP) when determining whether a dividend can be paid. I can't speak to other states' laws, but Professor Bainbridge is correct with respect to California.
Keith goes on to discuss the pertinent California statute in depth. Good read.
