Gov. Jack Markell last week signed into law the package of amendments to the Delaware General Corporation Law, including a provision banning stock corporations from adopting “loser-pays” bylaws that impose attorney fees and costs on activist shareholders who lose lawsuits alleging breach of fiduciary duty on the part of directors or officers.
The bill, SB 75, is set to take effect Aug. 1. Its prime sponsor was state Sen. Bryan Townsend, D-Newark. The legislation was approved 16-5 in the state Senate and unanimously in the state House of Representatives.
