Delaware – Legislation Effective August 1, 2021
Senate Bill 113 (Chapter 60) signed by the governor June 30 and effective August 1 amends the General Corporation Law to clarify that shares of a corporation’s capital stock held by any other entity are not entitled to be either voted or counted for quorum purposes if the corporation directly or indirectly holds a majority of such other entity’s voting power entitled to vote generally in the election of, or is otherwise entitled to appoint or act as, the governing body of such entity.
Senate Bill 114 (Chapter 61) signed by the governor June 30 and effective August 1 amends the LLC Act to among other things provide a safe harbor procedure for ratifying acts or transactions that may be taken by or in respect of a LLC under the Act or a LLC agreement that are void or voidable and waiving failures to comply with requirements of a LLC agreement that make such acts and transactions void or voidable.
Senate Bill 115 (Chapter 62) signed by the governor June 30 and effective August 1 amends the Revised Uniform Partnership Act to among other things provide a safe harbor procedure for ratifying acts or transactions that may be taken by or in respect of a partnership under the Act or a partnership agreement that are void or voidable and waiving failures to comply with requirements of a partnership agreement that make such acts and transactions void or voidable.
Senate Bill 116 (Chapter 63) signed by the governor June 30 and effective August 1 amends the Revised Uniform Limited Partnership Act to among other things provide a safe harbor procedure for ratifying acts or transactions that may be taken by or in respect of a limited partnership under the Act or a limited partnership agreement that are void or voidable and waiving failures to comply with requirements of a partnership agreement that make such acts and transactions void or voidable.