Meyer said in a statement that the overhaul will ensure “clarity and predictability, balancing the interests of stockholders and corporate boards.”
The bill .
Amendments fail during House debate
The debate in the House took on a sharp tone at times as members voted on several amendments, which the sponsors argued would keep some protections for small investors. All the amendments failed to garner the necessary votes to succeed. An amendment offered by Rep. Sophie Phillips, D-Bear, would have allowed companies to “opt-in” if they wanted to adopt the new changes made by the legislation. She said the amendment was needed because of the negative publicity the legislation had drawn to
Delaware . “Whether you agree or disagree, a lot of Delaware voters believe that this is a bad bill and a bad look for our state,” she said. “I know my district does.” She called Robert Jackson, New York University law professor and former U.S. Securities and Exchange Commission commissioner, to speak in favor of the amendment. Some House members objected that his comments did not relate solely to the amendment. House Speaker Melissa Minor-Brown abruptly ended his testimony after accusing him several times of talking too much about the bill itself. Bill sponsor state Rep. Krista Griffith, D-Fairfax, called the amendment unfriendly, saying it would be burdensome for companies and that it had not been reviewed by the Delaware State Bar Association’s Corporation Law Council. “Our goal is to have companies stay here, not leave here,” she said. “The amendment in effect adds additional layers that would incentivize these companies even more to leave.” Other amendments by Reps. Frank Burns and Madinah Wilson-Anton, both D-Newark, were also voted down. Burns said his amendment was aimed at making sure that corporations like Meta, the parent company of Facebook, don’t evade legal actions brought by minority shareholders. “I am aware of two actions against Meta where books and records discoveries were going on, and they can continue, but what they were looking into can now never be brought to bear under the SB 21 rules,” he said. That amendment also failed to pass. The law takes effect immediately.
