Controversial Sovereign Bill Passes, Angering Investors
By Catherine Fredenburgh
Law360, New York (February 14, 2006, 12:00 AM EST) -- A widely criticized bill that offers protection to executives and directors of Pennsylvania’s Sovereign Bank against a shareholder challenge was signed into law by the governor last week amid opposition from shareholders and charges that the state legislature bent their own rules to ensure the bill’s swift passage.
The law, which becomes effective immediately, changes state procedure in terms of how shares are counted in determining whether a transaction requires a shareholder vote. It also bars the removal of a Pennsylvania company's directors without cause, unless...