Goodbye to the Contemporaneous Ownership Requirement
22 Pages Posted: 14 Dec 2008 Last revised: 9 Feb 2009
Date Written: December 2, 2008
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: Suggested Citation