Goodbye to the Contemporaneous Ownership Requirement

Citation data:

Delaware Journal of Corporate Law (DJCL), Vol. 33, No. 3, 2008

Publication Year:
2008
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SSRN
SSRN Id:
1314052
Author(s):
J. Travis Laster
Tags:
Delaware; Journal; Corporate; Law; General Assembly; Contemporaneous ownership requirement; derivative actions; section 327
paper description
The General Assembly should amend the Delaware General Corporation Law to eliminate the contemporaneous ownership requirement for derivative actions from section 327. The rule is incoherent and ill-suited to each of the purposes advanced to support it. The rule is also unnecessary, as defendants and the Delaware courts have ample alternative avenues available for dealing with meritless claims.