Goodbye to the Contemporaneous Ownership Requirement

22 Pages Posted: 14 Dec 2008 Last revised: 9 Feb 2009

Date Written: December 2, 2008

Abstract

The General Assembly should amend the Delaware General Corporation Law to eliminate the contemporaneous ownership requirement for derivative actions from section 327. The rule is incoherent and ill-suited to each of the purposes advanced to support it. The rule is also unnecessary, as defendants and the Delaware courts have ample alternative avenues available for dealing with meritless claims.

Keywords: Delaware, Journal, Corporate, Law, General Assembly, Contemporaneous ownership requirement, derivative actions, section 327

Suggested Citation

Laster, J. Travis, Goodbye to the Contemporaneous Ownership Requirement (December 2, 2008). Delaware Journal of Corporate Law (DJCL), Vol. 33, No. 3, 2008. Available at SSRN: https://ssrn.com/abstract=1314052

J. Travis Laster (Contact Author)

Richards, Layton & Finger, P.A. ( email )

One Rodney Square
Wilmington, DE 19899
United States
302-658-6541 (Phone)
302-658-6548 (Fax)

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