The Delaware Court of Chancery, in Laura Perryman, et al. v. Stimwave Technologies, Inc., C.A. No. 2020-0079-SG, memo. op. (Del. Ch. Dec. 9, 2020), rules that defendant corporation’s provision of advancement rights to plaintiff directors and officers did not require preferred stockholder approval as an action out of the ordinary course of business, but did require approval as a “benefit.”
Frank Reynolds discusses the decision in CEO-director duo gets split Chancery decision on investor group power to veto their advancement rights.