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CII Urges Passage of Bill Wiping Out Fee-Shifting Bylaws at Delaware Companies

CII sent a letter May 6 to 21 Delaware State Senators urging them to pass promptly a bill (Senate Bill No. 75) invalidating fee-shifting bylaws at Delaware stock corporations. Fee-shifting bylaws require shareholders who sue a company to pay all of that company’s legal costs unless their lawsuit achieves a total victory. CII believes when companies adopt these provisions they stifle shareowners’ ability to seek redress through legitimate lawsuits and to keep corporations accountable to long-term investors. The bylaws continue to gain steam, with 75 U.S. companies adopting them so far, reports Kessler Topaz Meltzer & Check.

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