On October 26, 2023, Hirsh Ament was quoted regarding the Maryland Supreme Court’s Opinion in Eastland Food Corporation v. Mekhaya.
According to the article, the Supreme Court of Maryland overruled a prior distinction between a director’s managerial and non-managerial duties and reaffirmed that the Maryland General Corporation Law (MGCL) is the “sole source” of the duties of a director of a Maryland corporation.
“What I think this case does is reaffirm that Maryland has a statute, and particularly a duty statute, that provides a lot of certainty to boards in their decision-making process,” Ament said, noting that certainty is key for corporations.
“Uncertainty is generally a negative, and so the more certainty we can provide directors as to their standard of conduct and clarity on that standard, [the better],” Ament said. “It reinforces that Maryland has a statute that is very beneficial to corporations looking to incorporate in Maryland.”
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