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Court Of Chancery Holds Section 205 Is Limited To Validating Action

Posted In Securities

IN RE Genelux Corporation, C.A. 10042-VCP (October 22, 2015)

In a case of first impression, the Court holds that Section 205 of the DGCL can only be used to validate defective corporate actions, not to declare an action invalid. While a similar claim might be made in a Section 225 case, there are limits to who may bring such a claim, so this decision does make a real difference.