How SB 113 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill clarifies the voting rights of shares owned by a corporation or controlled entities regarding quorum counts.

• § 160, Chapter 1, Title 8 of the Delaware Code

  a corporation’s capital stock belonging to shall neither be entitled to vote nor be counted for quorum purposes if such shares belong to (i) the corporation or to, (ii) another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the corporation, shall neither be entitled to vote nor be counted for quorum purposes. or (iii) any other entity, if a majority of the voting power of such other entity is held, directly or indirectly, by the corporation or if such other entity is otherwise controlled, directly or indirectly, by the corporation. → a corporation’s capital stock shall neither be entitled to vote nor be counted for quorum purposes if such shares belong to (i) the corporation, (ii) another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the corporation, or (iii) any other entity, if a majority of the voting power of such other entity is held, directly or indirectly, by the corporation or if such other entity is otherwise controlled, directly or indirectly, by the corporation.

  It specifies that shares held by other entities controlled by the corporation cannot be voted or counted for quorum.