July 19, 2023

Law360 Quotes Gabe Steele on the Delaware Corporate Law Overhaul

1 min

On July 19, 2023, Gabe Steele was quoted in Law360 regarding the Delaware Corporate Law changes that were recently signed into legislation.

According to the article, Governor John Carney signed a set of amendments to multiple sections and subsections of Delaware's General Corporation Law (DCGL) on July 17, 2023. Three other bills amending Delaware Code provisions for limited liability companies and partnerships were signed in May. The DGCL package would streamline, repair, and ratify otherwise defective corporate acts; allow an insolvent company to sell assets under some circumstances without stockholder approval; and allow a corporation to eliminate or ease stockholder vote requirements in the case of forward or reverse stock splits, among many other revisions.

Discussing the significance of the changes, Steele highlighted the stock split amendments. The amendments “ease the burden on widely-held public corporations, which often had trouble obtaining the required vote (i.e., the approval of holders of a majority of the outstanding shares) to affect changes in its outstanding or authorized stock even when such changes were essential to important corporate actions such as raising capital, pricing a public offering or maintaining minimum stock exchange listing standards,” he said.