Delaware’s complicated and controversial bill that would permit companies to make contracts with executives that extinguish the rights of shareholders is hurtling toward a vote before the end of the legislative session.
Senate Bill 313, which corporate legal scholars argue will shift how the board of directors oversee millions of companies that do business as Delaware corporations, is set for a floor vote in the House of Representatives today. The potential vote is set at the end of a long agenda in the House after a contentious House Judiciary committee hearing on Tuesday raised questions about the late timing of the bill on a complicated issue. Rep. Franklin Cooke (D-Newport/New Castle) made his displeasure known at the committee hearing, but voted to release the bill so his other colleagues would be able to hear the complex issues.“I know how complicated this is, because it’s very complicated to me, and I don’t appreciate it on June 18. I need my other colleagues to hear this completely,” Cooke said during the hearing.
SB 313 passed out of committee with a vote of 6-4, with one member absent. It proved to be a more contested matter than hearings in the Senate where it passed unanimously last week.There are five legislative days to go and legislators are now looking at a race to the finish line. The Joint Finance Committee has also released the operating budget bill, which includes $6.1 billion in operating expenses, on the same day SB 313 was released from committee.
Controversial corporate law bill moves to final vote – Delaware Business Times
ValueEdge Advisors 