Court Denies Appointment of Custodian Under DGCL Section 226(a)(3) to Continue Defunct Company – Company Law / Commercial Law


United States: Court Denies Appointment of Custodian Under DGCL Section 226(a)(3) to Continue Defunct Company

To print this article, all you need to do is be registered or log in to Mondaq.com.

Barry Klayman and Mark Felger, writing in the Delaware Business Court Insider, discuss a recent decision by the Delaware Court of Chancery refusing to appoint a trustee pursuant to Section 226(a)(3) of the Delaware General Corporations Act to continue the business of a defunct corporation. Although the Vice Chancellor denied the petition based on the wording of the statute, his opinion appears to abandon the court’s previous policy against allowing the revival of defunct Delaware corporations to be used as blank check corporations.

To read the article, click here.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: US Corporate/Commercial Law

ADR and diversity in the life sciences sector

JAMS

The COVID-19 pandemic and subsequent rush to develop life-saving vaccines has posed enormous challenges to practitioners in all areas of the life sciences and healthcare industries, including those whose field of interest…

The SEC’s focus on cybersecurity is starting to take shape

Goodwin Procter LLP

The U.S. Securities and Exchange Commission is implementing a campaign to revise the agency’s expectations for cybersecurity and cyber incident reporting for the financial services industry…