Delaware

Controversial corporate law changes passed by House, signed by Delaware governor

Published

10 months ago

March 25, 2025

Press Room

Controversial corporate law changes passed by House, signed by Delaware governor

The Delaware House of Representatives passed a bill that would make it harder for shareholders to sue corporations’ most powerful leaders.
Supporters of the bill say the changes are necessary to give corporations more predictability and consistency.
Critics argue that the changes will handcuff the ability of Delaware’s Chancery Court to police deals involving conflicts of interest.

The Delaware House of Representatives on Tuesday night overwhelmingly passed a controversial rework of the state’s corporate code.

Delaware’s corporate laws govern the management of most of the nation’s top corporations, and the amendments passed by the legislature Tuesday will make it harder for shareholders to sue companies’ most powerful leaders for self-dealing and transactions that include conflicts of interest.

The overhaul has been the most controversial initiative in this year’s General Assembly, seeing debate from national media headlines to mail sent to everyday Delawareans.

The bill has been championed by new Gov. Matt Meyer as well as Democratic leaders in the General Assembly. They say the changes are a necessary course correction that will give corporations’ most powerful managers more predictability and consistency as they consider business transactions.

To justify the change, proponents have argued that the future of Delaware is at stake, forecasting an exodus of business activity that underpins the state’s relatively low taxes, lack of sales tax and funds more than a quarter of state government annual expenses.

Meyer swiftly signed the bill after its House passage Tuesday night, saying in a press release the bill would “protect state revenue” that funds all aspects of local government.

Critics, which include corporate law academics, institutional investors and attorneys that represent shareholders, contend that doomsday prophecies about an exodus of companies and corresponding loss of state revenue are a mirage created to justify what one attorney described as a “nakedly corrupt hand-out to billionaires.”

They argued the changes would handcuff the ability of Delaware’s famous Chancery Court to police deals involving conflicts of interest, ultimately giving influential business leaders greater leverage to benefit themselves at the expense of pensioners, retirees and ordinary investors.

In sum, this will detract from Delaware’s status as the premier place to charter a business, critics argued, and lead businesses away from Delaware.

“I think it risks the future of the franchise. It risks federal intervention,” said Democratic state Rep. Madinah Wilson-Anton. “That would be, in fact, cooking that golden goose.”

The House hearing capped a month of debate that resembled national debates over the power and influence individual business leaders and billionaires have over the mechanics of government.

During Tuesday’s hearing, opponents unsuccessfully introduced several amendments aimed at bolstering protections for investors, as well as preventing the bill from undercutting ongoing shareholder investigations into potential past misdeeds by powerful individuals at companies like Meta − Facebook and Instagram’s parent company.

What the bill does

Delaware is the legal home to some 2 million corporations, about 60% of those in the Fortune 500. The corporate laws on the state’s books, in turn, govern the rules by which the nation’s largest corporations govern themselves.

When shareholders feel they’ve been taken advantage of by powerful people within companies, they take those claims to the Delaware Chancery Court, which serves as a check on mismanagement. Its speed, consistency and judicial expertise in evaluating such claims is said to be one reason Delaware is the primary place to charter a business.

Previously: Controversial Delaware corporate law overhaul passed by Senate, heads to state House

The law passed Tuesday deals specifically with how Chancery Court can police deals cut by a company’s most powerful shareholders, like Mark Zuckerberg of Meta, when there is a conflict of interest. These individuals are referred to in the law as “controlling stockholder” or “director.”

The changes amend how a controlling stockholder is defined, lower the hurdles they must jump through to execute a potentially conflicted transaction, and curtail information available in so-called “books and records” requests. These requests are used by aggrieved shareholders to obtain documents, files, meeting minutes and communications to investigate their claims.

Attorneys involved in drafting the legislation say that over the years, the legal definitions of controlling stockholders, what books and records are, and other concepts affected by the legislation have been expanded by Chancery Court rulings. This has caused uncertainty when business managers are evaluating potential company transactions.

The sentiment is that Delaware feels “less predictable, less stable, less business friendly” and that there is a “much more litigious environment,” said Amy L. Simmerman, partner at Delaware firm Wilson Sonsini and advocate of the bill, at a House committee hearing last week.

This has caused more companies she counsels to question their future in Delaware, she said.

So the purpose of this legislation is to provide more predictability and balance where recent court decisions have caused confusion, said Lawrence Hamermesh, a corporate law expert who helped draft the bill.

But opponents have argued the legislation will reduce the role of Chancery Court policing bad transactions, overturn decades of court precedent and allow controlling shareholders greater leverage to engage in conflicted company transactions at the expense of other shareholders.

It will also further the idea that powerful business people can simply turn to a pliable state legislature for relief when they don’t agree with a Chancery Court decision, opponents said.

Amendments fail on House floor

Multiple amendments debated on the House floor Tuesday were aimed at preserving aspects of Delaware case law that Wilson-Anton, author of those amendments, argued would continue to provide protections for investors.

“We are dealing in dangerous territory,” Wilson-Anton said.

Each failed after they were labeled as “unfriendly” by the bill’s House sponsor.

Another amendment would have made the proposed changes apply only if individual companies’ shareholders voted to adopt the changes.

Democratic state Rep. Sophie Phillips, the amendment’s sponsor, told legislators the bill has generated a “bad look for our state” and that the amendment would reflect a “compromise.”

Robert Jackson, a law professor at New York University and former commissioner of the U.S. Securities and Exchange Commission, was called as a witness by Phillips.

He argued that without amendment, the bill changes law that has worked well for many Delaware-chartered companies for decades. An opt-in provision would give companies the flexibility to tailor the law to their needs or not, a hallmark of other aspects of the state’s corporate code, he said.

Democratic state Rep. Krista Griffith, the bill’s sponsor in the House, argued the amendment would impose a “tremendous amount of work” for companies to opt into the new rules, nullifying the purpose of the bill. Jackson countered that opting into the rules would carry the same process as reincorporating outside of Delaware and without the downsides that come with such a move.

Jackson’s testimony was ultimately cut off by House Speaker Melissa Minor-Brown, who accused him of speaking too much about the bill itself and not the amendment, which ultimately failed.

Questions over motive for corporate law changes

Another amendment was aimed at criticisms thrown at the General Assembly about motive.

Absent data showing any exodus of Delaware companies is afoot, opponents have argued the changes are actually at the behest of a few powerful business leaders like Zuckerberg at Meta.

In February, news leaked to the Wall Street Journal that Meta was considering leaving Delaware. Shortly after, tech company Dropbox and Pershing Square Capital Management, an investment firm, made similar rumblings.

Secretary of State Charuni Patibanda-Sanchez has said these rumblings began the conversation that led to the legislation.

Public records first reported by CNBC showed a Saturday meeting organized by the Meyer administration with state legislators and corporate attorneys the day after the Meta leak was published and then a meeting with Meyer and Meta officials organized for the following day.

Over the subsequent weeks, the bill was drafted by Hamermesh, also an attorney at Richards, Layton & Finger, as well as former Chief Justice of the Delaware Supreme Court Leo Strine Jr. and former Court of Chancery Chancellor William Chandler III, both of whom now work for firms that typically defend against shareholder lawsuits.

On the House floor Thursday, Rep. Frank Burns noted he was aware of two pending shareholder investigations into Meta that could become lawsuits and could be undercut by the changes.

Mounting criticism: Attorneys, academics criticize proposed corporate law changes at hearing

The change passed by legislators Tuesday would apply to any previous company transactions that are not subject to any lawsuit or court ruling as of February, potentially undercutting any lawsuit that flows from a current investigation into past transactions.

“The last thing that Delaware should have is the impression that by passing this law, we intervened in some way that may have benefited some company,” Burns said, presenting an amendment that would make the new rules only apply to transactions occurring after the bill’s passage.

Griffiths, the bill’s House sponsor, also described this amendment as “unfriendly” and argued it would cause confusion and go against the point of the bill: to make things “clearer for corporations.”

Burns replied that it would be less confusing and more fair to have past transactions governed by the law in effect at the time and future transactions governed by the new law.

This would be more “honorable and clean,” and “takes us out of being accused of having done something that would intervene in some ongoing investigation,” he said.

That amendment also failed.

Contact Xerxes Wilson at (302) 324-2787 or xwilson@delawareonline.com.

Debate on the bill

Source link

Click to comment

Delaware

Can you legally ride e-bikes and scooters in Delaware

Published

11 hours ago

January 7, 2026

Press Room

Can you legally ride e-bikes and scooters in Delaware

Sure, cars and motorcycles are popular ways to get around. But if you can’t afford either one, an electric bike might save the day like Delaware’s own Superman.

Then again, is it legal to cruise around on an electric bike or electric scooter in Delaware?

Here’s a guide to help you stay out of trouble when traveling in the Small Wonder:

What are Delaware laws for riding electric bikes?

An electric bicycle may be ridden anywhere bicycles are allowed (unless posted otherwise), which includes streets, highways, roadways, shoulders and bicycle lanes.

Delaware prohibits anyone under the age of 16 from operating an electric bicycle, which features pedal assist only and tops off at 28 mph.

Difference between electric scooter, triped and moped explained

A motorized skateboard or scooter is any vehicle with two wheels on the ground, handlebars and a hand-controlled throttle or brake, designed to be stood or sat upon by the operator, according to Delaware law.

While mopeds and tripeds are similar in design and size, mopeds have two wheels and tripeds have three wheels.

Where can you legally ride motorized vehicles?

Delaware law states that motorized skateboards or scooters can be used on public streets or highways as long as they are in the neutral position or the powertrain function is disengaged. However, in Newark, you can be fined $100 for riding motorized scooters on streets and sidewalks.

Mopeds and tripeds are prohibited on interstates and operating railroads, according to the Delaware Division of Motor Vehicles.

Do you need insurance for a triped or moped?

No motor vehicle insurance is required for operating a moped or triped, according to the Delaware Division of Motor Vehicles.

What rules are there for riding a scooter?

Delaware state law states that a person cannot operate a motorized skateboard or scooter while under the influence of alcohol or any drug.

Are there license and registration requirements for electric bikes?

If you want to operate scooters, they must be tagged and registered by the Division of Motor Vehicles, and the operator must have a valid driver’s license.

The Delaware DMV states that a basic driver’s license is required to travel with a moped or triped on public roadways.

The state of Delaware does not have any licensing or registration requirements for electric bikes.

Who can legally ride an electric scooter?

The minimum age to operate a scooter is 16. No person under 12 can operate a scooter unless they are under adult supervision or a parent or legal guardian.

Is there a law for wearing a helmet on a motorized scooter or skateboard?

To operate a motorized skateboard or scooter, bicycle-type helmets are required for those under 16, according to Delaware State law.

If you have an interesting story idea, email lifestyle reporter Andre Lamar at alamar@gannett.com. Consider signing up for his weekly newsletter, DO Delaware, at delawareonline.com/newsletters

Source link

Delaware

Delaware County Council chooses new leadership

Published

23 hours ago

January 6, 2026

Press Room

Delaware County Council chooses new leadership

Monday also coincided with the swearing-in ceremony of Womack, Controller Louis Rosenthal, District Attorney Tanner Rouse, Sheriff Siddiq Kamara and first-term Councilmember Joanne Phillips.

“I remain inspired by what the voters told me during this election,” Phillips said in the press release. “They told me to keep working hard, use my common sense, keep moving the county forward, implement changes as efficiently and effectively as we can, use our resources wisely, and take care of our people.”

First-term Delaware County Councilmember Joanne Phillips gets sworn in at the induction ceremony on Jan. 5, 2026. (Courtesy of Delaware County Communications and Public Affairs Department)

Among its first orders of business, County Council voted to reappoint Barbara O’Malley as executive director for a two-year term to oversee the day-to-day operations of government departments.

County Council’s first official meeting is Wednesday.

Source link

Delaware

Katt Williams & more big comedians to see in, near Delaware 2026

Published

1 day ago

January 6, 2026

Press Room

Katt Williams & more big comedians to see in, near Delaware 2026

Are you already in need of a laugh (or two) in 2026?

There are several comedians performing in Delaware area this year who might be able to get the job done. But it’ll cost you a couple of coins.

Here are some big (and smaller) comedians who are currently confirmed for touring in and near the First State, from now through the summer.

Some of the most notable Black comedians performed on HBO’s raw “Def Comedy Jam” in the 1990s, including Dave Chapelle, Bernie Mac and Thea Vidale. That’s the same unfiltered Vidale who also starred as the mama of WWE star Shelton Benjamin for a brief wrestling storyline. Vidale also played the mom of R&B singer Brandy on the ’90s sitcom “Thea,” which made the veteran comic the first Black female comedian to have a sitcom named after them on a national network, according to The Grand’s website. Vidale will headline a night of laughs at an event presented by Keenan Copening’s Bar None Entertainment. The event includes DJ-K and The Reverend Bob Levy.

Studio 1 of The Grand (818 N. Market St., Wilmington) at 8:30 p.m. Jan. 10. Tickets are $50. Visit thegrandwilmington.org or call (302) 652-5577.

Delaware State Fair alum Jeff Dunham is coming to the arena of the Philadelphia 76ers with his new “AI” tour, which doesn’t stand for “Allen Iverson,” sadly. The rock-star ventriloquist and his puppet gang, who have 4.76 million YouTube subscribers, will tickle patrons with the “Artificial Intelligence” tour, a subject we can’t avoid these days.

Xfinity Mobile Arena (3601 S. Broad St., Philadelphia, Pennsylvania) at 7 p.m. Jan. 15. Tickets start at $92. Visit jeffdunham.com.

With 9 million fans on Instagram, Desi Banks will march a small army of his soldiers into a battlefield of silliness where he’ll wage war against boredom this spring. Although people love his internet skits, Banks is a veteran performer who also can work a stage, which he’s shared with big names including Martin Lawrence and Mike Epps.

Punch Line Philly (33 E. Laurel St., Philadelphia) at 7:30 and 9:45 p.m. Jan. 16; 7 and 9:15 p.m., Jan. 17; 7 p.m. Jan. 18. For tickets or more info, visit punchlinephilly.com or call (215) 606-6555.

The new year equals a fresh start to hear new jokes. Next on deck is comedian Mike Cannon, who can overshare with the best of them. Cannon has a sharp-witted style of comedy that can turn on-the-spot crowd observations into three minutes of material. Among his long list of credits, the podcast troublemaker starred in the film “Timing” on Amazon Prime, and he’s appeared on Barstool Sports’ “Friday Night Pints.”

The Queen (500 N. Market St., Wilmington) at 8 p.m. Jan. 29. Tickets are $32. Visit thequeenwilmington.com or call (302) 400-7020.

Seven wild comics will hit one stage, with Mike Epps leading the way, during the return of the “We Them One’s” comedy tour at The Liacouras Center, home of the Temple Owls. The lineup features Epps, DC Young Fly, Karlous Miller, Chico Bean, Mojo Brookzz, Tony Roberts, Jayski and Fab Monroe.

Liacouras Center (1776 N. Broad St., Philadelphia) at 8 p.m., Feb. 20. Tickets are $85-$311+. Visit liacourascenter.com or call (215) 204-2400.

Maybe you saw Affion Crockett in a friendly roast battle against Kevin Hart, or in Netflix’s “Beverly Hills Cop: Axel F.” Either way, one of the next places you can catch Crockett is headlining four shows at Punch Line Philly.

Punch Line Philly (33 E. Laurel St., Philadelphia) at 7:30 and 9:45 p.m. Feb. 20; 7 and 9:15 p.m. Feb. 21. For tickets or more info, visit punchlinephilly.com or call (215) 606-6555.

It was only late last year when comedian and actor Patton Oswalt came to Wilmington. Now he’s headed back to Delmarva, this time playing Ocean City.The longtime entertainer has a résumé in TV and film that’s longer than the “Star Wars” title sequence with TV and movie credits that include “The King of Queens,” “Parks and Recreation” and last year’s “Ghostbusters: Frozen Empire.”

Ocean City Performing Arts Center (4001 Coastal Highway, Convention Center, Ocean City) at 7 p.m. March 5. Tickets are $61.90 to $185.50. Visit ocmdfilmfestival.com.

Comedian Ryan Davis ended 2025 on a high note, opening for well-respected comic Ali Siddiq. Davis is best known for his viral videos on social media, where he spent years ranting about pop culture or whatever else was on his mind. Some of his notable credits include appearances on “Curb Your Enthusiasm” and “All Def Comedy.”

Punch Line Philly (33 E. Laurel St., Philadelphia) at 7 and 9:15 p.m. March 20; 7 and 9:15 p.m. March 21. For tickets or more info, visit punchlinephilly.com or call (215) 606-6555.

Going to a Garrison Keillor performance can feel like you’re at a concert, poetry session and a comedy show in one event. The storyteller, who is a native of Minnesota, will be joined with special guest Rich Dworsky for an evening of double trouble.

The Grand (818 N. Market St., Wilmington) at 8 p.m. March 28. Tickets are $66-$86. Visit thegrandwilmington.org or call (302) 652-5577.

Tracy Locke and more: ‘April Fools Festival,’ Milton

No matter the forecast, comedian Tracy Locke is bringing you spring comedy showers in Milton, so bring a poncho. The headliner will be joined with Dave Evans and host Keith Purnell.

Milton Theatre (110 Union St., Milton) at 7:30 p.m. April 25. Tickets are $15.76-$22.35. Visit miltontheatre.com or call (302) 684-3038

Don’t think David Sedaris stands around telling jokes all day. Because he’s versatile enough to sit down and write humor, which he’s proved through multiple New York Times bestsellers. This includes Sedaris’ writings in “Let’s Explore Diabetes with Owls” (comical essays about personal events that range from a colonoscopy to his dad wearing a shirt and underwear during dinner). Sedaris reminds his fans that the same thing that can make you cry also can make you laugh.

The Playhouse on Rodney Square (1007 N. Market St, Wilmington) at 7 p.m. April 12. Tickets are $55-$92. Visit thegrandwilmington.org or call (302). 888-0200.

There might not be a comedian today who’s more likeable than Katt Williams, depending on whom you ask. Williams, who has headlined arenas for years, caught fire on the “Club Shay Shay” podcast in 2024 with an episode that cracked over 91 million views. He’s seen a surge of popularity over the last two years that saw more podcast appearances like Joe Rogan’s pod, which racked up 25 million views alone.

Liacouras Center (1776 N. Broad St., Philadelphia) at 8 p.m. April 24. Tickets are $92-$353+. Visit liacourascenter.com or call (215) 204-2400.

Aries Spears, Wilmington

The biggest comedian who’s been announced for Delaware in 2026 is Aries Spears, who has been in the game for over three decades, and he’s still cracking people up. From his eight seasons on the sketch series “MADtv” to being a regular guest on the popular YouTube channel Vlad TV, Spears has shown his versatile ability to be funny with a script and in candid conversation. While Spears isn’t just an impressionist comic, he’s got a knack for mimicking entertainers like DMX, Jay-Z, Denzel Washington and Shaquille O’Neal.

The Grand (818 N. Market St., Wilmington) at 8 p.m. May 1. Tickets are $55-$99. Visit thegrandwilmington.org or call thegrandwilmington.org.

Pennsylvania native Shane Gillis is gonna be on an emotional high when he headlines The Linc, home of the Philadelphia Eagles, this summer, joined by special guests. Gillis is one of the hottest names in comedy and showed people when he appeared in Bud Light’s 2025 Super Bowl ad with Peyton Manning and Post Malone, an experience that was capped off with The Birds winning the Super Bowl.

The Linc (One Lincoln Financial Field Way, Philadelphia) at 8 p.m. July 17. Tickets are $30-$171+. Visit lincolnfinancialfield.com.

Source link