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