Insights

Partners Gardner Davis and Danielle Whitley co-wrote an article, “Blocking Director’s Fiduciary Duty Essential for Successful Remote Entity Structure,” which explains why, in compliance with Delaware laws, blocking directors need to serve as fiduciary for bankruptcy remote entities, rather than for the entities’ loan lenders.

The Delaware Chancery Court recently ruled that a corporate bylaw provision providing that stockholders may remove directors only upon a supermajority vote is invalid.