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Delaware's top court has upheld a 2025 law that overhauled the state's widely used corporate code to limit lawsuits against powerful business leaders. Under the law, known as Senate Bill 21, if a deal is approved by a board committee that has a majority of independent directors or if it is approved by a vote by public shareholders, investors cannot challenge it in court. Previously, both steps were required and the board committee had to be entirely made up of independent directors. Governor Matt Meyer said in a statement: “This past year was a period of monumental growth for Delaware, with a sharp increase in corporate incorporations in 2025, both in absolute terms and relative to other states. In short, SB-21 is working, and I’m glad it will continue to be the law.”
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