Delaware General Corporation Law Amendments 2024: Governance Rights, Transaction Approval, Lost Premium Damages
Impact of Recent Chancery Court Decisions in Moelis, Blizzard, and Crispo v. Musk

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Corporate Law
- event Date
Wednesday, November 6, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will guide corporate and general counsel on the July 2024 amendments to the Delaware General Corporation Law (DGCL), the anticipated impacts of those amendments on corporate governance and litigation, and practical considerations for corporations.
Faculty

Mr. Cannizzaro, III, chairs the firm's Corporate/Mergers & Acquisitions practice. He is a seasoned corporate lawyer, focusing on mergers and acquisitions, corporate governance, alternative entity issues, and securities. Mr. Cannizzaro,III, represents public and private companies and private equity sponsors in complex US and cross-border transactions, including mergers, acquisitions, investments, dispositions, spinoffs, joint ventures, energy infrastructure projects, restructuring, bankruptcy and distressed M&A, and SPACs. Beyond discrete transactions, he provides counsel to international and domestic clients in connection with their ongoing business and operations.

Mr. Grzaslewicz is a Partner in the Corporate and Commercial Litigation Groups. He is an experienced Delaware litigator focusing his practice on litigation involving corporations and other business entities formed under Delaware law. Mr. Grzaslewicz represents clients in the Delaware Court of Chancery in various business disputes. His experience includes litigating breach of fiduciary duty, breach of contract, and fraud actions, as well as litigating disputes arising under Delaware’s corporate and alternative entity statutes, including control contests, demands for books and records, and demands for advancement and indemnification. Mr. Grzaslewicz also has an active practice before the Complex Commercial Litigation Division of the Delaware Superior Court, including, most recently, successfully prosecuting a post-acquisition fraud claim as first chair litigation and trial counsel, which resulted in a multi-million dollar judgment for his client.

Mr. O'Connell represents companies, members of management, and investors in business disputes belore the Delaware courts. He also counsels companies, directors, officers, and managers of Delaware business entities in connection with transactions that involve litigation risk. Mr. O'Connell has represented parties in the Delaware Court of Chancery in disputes over the ownership, control, and management of Delaware business entities, including corporations, partnerships, and limited liability companies. His clients include companies, founders, and significant investors, as well as directors, officers, general partners, and other members of senior management. Mr. O'Connell frequently litigates claims for breach of fiduciary duties and breach of limited partnership agreements and limited liability company agreements, as well as governance disputes and control contests, advancement actions, books and records litigation, appraisal actions, and other statutory proceedings under the Delaware General Corporation Law, the Delaware Limited Liability Company Act, and the Delaware Revised Uniform Limited Partnership Act.
Description
Several amendments to the DGCL were signed into law on July 17, 2024. The amendments, which became effective Aug. 1, 2024, and apply retroactively, address several recent court of chancery decisions. However, some of the amendments have themselves sparked criticism.
One such amendment is new Subsection 122(18), which was enacted in response to the ruling in West Palm Beach Firefighters' Pension Fund v. Moelis & Co. Subsection 122(18) is a broad provision that authorizes stockholders and beneficial owners of stock to enter into agreements with a corporation, including, for example, agreements containing provisions that restrict corporate actions, grant the stockholders governance rights, or limit or prohibit the corporation from taking certain actions.
The amendments also included new and amended provisions within the DGCL pertaining to various procedural requirements in the merger approval process introduced in Sjunde AP-Fonden v. Activision Blizzard Inc., as well as amendments that address the decision in Crispo v. Musk and that clarify and allow for certain consequences for the early breach of merger agreements.
Another recent development in Delaware case law also dealing with controlling stockholders is the Court of Chancery’s decision in In re Sears Hometown and Outlet Stores, Inc. Stockholder Litigation, C.A. No. 2019-0978-JTL (Del. Ch.), which, for the first time, established the standard of review applicable to controlling stockholders’ exercise of their right to sell and right to vote shares. As an complement to the discussion of Moelis, the panelist will discuss the Court of Chancery’s In re Sears Hometown decision from earlier this year.
Counsel and companies need to understand the scope and effect of these amendments as well as prepare for how they will impact corporate governance and litigation practices.
Listen as Vincent J. Cannizzaro, III, Partner at Morris James, discusses the impactful 2024 amendments to the DGCL and best practices for counsel and corporations in light of the amendments.
Outline
- Stockholder agreements
- Moelis
- New Subsection 122(18)
- Transaction approval requirements
- Blizzard
- New Section 147
- Amended Section 232
- New Section 268
- Authorization of lost premium damages provisions
- Crispo v. Musk
- Amended Section 261
- Takeaways and best practices
Benefits
The panelist will review these and other key issues:
- What do the recent amendments to the DGCL indicate about stockholder agreements, transaction approval requirements, and lost premium damages provisions generally?
- How will the recent amendments affect corporate governance and litigation?
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