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Delaware court's Cloudflare ruling sparks appeal, challenges 'good faith' standard

Vice Chancellor J. Travis Laster of Delaware's Chancery Court has certified an interlocutory appeal of his controversial decision involving Cloudflare. Laster's ruling, which enjoined Cloudflare's board decision on capital structure, is seen by some as an expansive interpretation of "good faith" that undermines Delaware Senate Bill 21. This bill was intended to provide greater deference to independent boards and increase predictability in corporate governance. AI

RANK_REASON Article discusses a legal ruling and its implications for corporate governance law, rather than a new release or event.

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Delaware court's Cloudflare ruling sparks appeal, challenges 'good faith' standard

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COVERAGE [1]

  1. Fortune TIER_1 English(EN) · Jeffrey Sonnenfeld, Steven Tian ·

    Cloudflare’s appeal won’t fix what’s broken in Delaware’s Chancery Court

    A vice chancellor, Travis Laster, sent his own ruling to the state Supreme Court. Boards shouldn’t read that as reassurance.