Delaware Supreme Court Requires Board To Demonstrate "Compelling Justification" For Stock Sale Primarily Intended To Interfere With Stockholder Voting Rights
Shearman & Sterling
JULY 13, 2021
On June 28, 2021, in an en banc opinion authored by Chief Justice Collins J. Seitz, Jr., the Delaware Supreme Court reversed a decision by the Delaware Court of Chancery, which had upheld a contested stock sale by the board of UIP Companies, Inc. (the "Company"). Coster v. UIP Cos., Inc., No. 49, 2020 (Del. June 28, 2021). Plaintiff was one of the Company's two equal stockholders.
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