Look Before You Leap Into Forum Selection Bylaws

Law360, New York (July 19, 2013, 4:27 PM EDT) -- In a recent opinion, the Delaware Court of Chancery upheld the validity of the forum selection bylaws adopted unilaterally by the boards of directors of Chevron Corporation and FedEx Corporation. A forum selection bylaw designates a forum as the exclusive venue for certain stockholder suits against the corporation and its directors and officers.

While this decision provides a path for boards of directors of Delaware corporations to adopt forum selection bylaws, there are various factors that boards should consider before taking any action. Boilermakers Local 154...
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