Digital Utilities Ventures Inc (DUTV)

[SUNYN75]

Boards or Corporate officers cannot usurp Voting rights of Common Shareholders in Delaware

Delaware courts have zealously guarded the
voting rights of stockholders, demanding
that directors demonstrate a “compelling
justification” for actions that impact a
stockholder vote that “involves an election of
directors or touches on matters of corporate
control.”

The Chancery Court’s decision here
highlights the Delaware courts’ continued
sensitivity to board actions that affect the
stockholder franchise. As this ruling and
other decisions in the
Blasius
progeny make
clear, Delaware courts will not defer to
directors’ business judgment when their
actions “intrude on the space allotted for
stockholder decision-making.”

https://www.milbank.com/images/content/6/7/6726/111411-Court-bars-preferred-stock-Reder-Schwartz-Murphy.pdf

Regards

Sunny:>)))