Young Conaway’s Statement Regarding SB 21
For Immediate Release
WILMINGTON, DE - Young Conaway Stargatt & Taylor, LLP, one of Delaware’s leading corporate and bankruptcy law firms, supports proposed Delaware Senate Bill 21, as modified by the Delaware Corporate Council.
For more than a century, Delaware corporate law has listened and responded to the changing needs of the marketplace. Where development and change of common law, which is created by judicial decisions applying the existing law to ever changing sets of facts, necessarily moves slowly at times, the legislature has the unique ability to move quickly to make marketplace adjustments. The modified SB21 builds upon judicial decisions like Corwin and MFW in an effort to respond to new market forces by revising existing Delaware law faithfully upheld by the judiciary.
It is anticipated that SB21 will, among other things, provide company managers and their counselors with greater deal certainty for certain types of transactions, most notably those that involve “controllers” of companies. That added certainty, and the ability to have such issues heard before the Delaware Court of Chancery, the preeminent business court in the country, will serve to ensure Delaware’s continued stature in the field.
As with past amendments to the corporation code, the amendments contemplated in Senate Bill 21 reflect the collective efforts of practitioners, scholars and elected officials to ensure that Delaware continues to be the first choice for new companies, and those that have been incorporated in the state for more than 100 years. Young Conaway voices its strong, continued support for the Delaware Judiciary and recognizes the significant efforts of a broad array of stakeholders who have worked faithfully to ensure Delaware’s continued global preeminence through this legislation.