Sweeping Changes Coming to Delaware Corporate Law

Plus a contest to name the next Act to stop Congressional trading šŸ˜€

Author

Bruce Carton
July 15, 2024

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Good morning! Hereā€™s whatā€™s up (nothing, hence the most boring headline ever for this edition of the Daily Update).

Clips āœ‚ļø

Battle Over Shareholder Pacts Strains Delawareā€™s Business Courts

Sweeping changes to Delaware corporate law could give more power to influential shareholders, letting them make more deals on behalf of the company without board oversight.

The proposed bill expands the breadth and power of stockholder agreements, which are often used by activist investors to gain board seats and by founders to coordinate control.

It was adopted in the legislature in the wake of recent decisions by the stateā€™s specialized business court and has drawn criticism from that courtā€™s chief judge. Gov. John Carney plans to sign the bill into law, a spokeswoman said, and it would take effect Aug. 1.

by WSJ

German government offloads its final Bitcoin holdings

Germanyā€™s government offloaded the last of its Bitcoin holdings on July 12, according to data from Arkham Intelligence.

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Most of the 50,000 Bitcoin dumped by the German government over the last three weeks resulted from an asset seizure and was largely responsible for keeping the market below the $60,000 price point and its 200-day exponential moving average.

by Coin Telegraph

Acronym Contest

I said last week that I donā€™t see the recently-hyped ā€œETHICS Actā€ going anywhere in Congress. Not because it is a bad idea to prevent Congress from trading stocks (it actually seems like a great idea) but because I feel like Iā€™ve seen this movie many times and know how it ends.

That said, I was impressed with the ETHICS acronym they came up with (ā€œEnding Trading and Holdings in Congressional Stocksā€). The ETHICS Act, of course, came on the heels of the apparently-abandoned PELOSI Act (ā€œPreventing Elected Leaders from Owning Securities and Investmentsā€)ā€”again, a very solid acronym given the challenge of coming up with both a relevant name, i.e., ETHICS, and then coming up with matching words that make sense!

Todayā€™s contest: Come up with a new acronym for an Act that would stop Congress from trading stocks. You know Congress is going to need it next month or next year, so letā€™s help them out! Please email me by replying to this email and send in your best acronym, the winner gets a Securities Docket hat.

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