Delaware To Hear Proxy-Cost Fight Case

Law360, New York (July 1, 2008, 12:00 AM EDT) -- The Delaware Supreme Court has agreed to rule on whether companies have to reimburse shareholders for the costs of even partially successful short-slate proxy contests.

The Securities and Exchange Commission asked the court for a ruling, the first time such a request has been made since a change in the state's constitution allowing such referrals last year.

Myron T. Steele, chief justice of the Delaware Supreme Court, wrote that there were “important and urgent reasons for an immediate determination of the questions certified” in a decision...
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