Chancery Orders Additional Information to Consider Dissolution Petition
In re Matter of Global Safety Labs, Inc., C.A. No. 2022-0309-JTL (Del. Ch. May 12, 2022)
This case concerned the dissolution procedures of the DGCL, specifically Section 280, which with Section 281 establishes an optional, court-supervised wind-up process that provides a safe harbor from post-dissolution liability. In this decision, the Court of Chancery faults the paucity of information the Court regularly sees in such actions, which often proceed ex parte. The Court explained that it requires more information to grant relief, including “about the entity, its history, the path that led to the relief being sought, and the parties who could be affected by the relief.” The Court cited first-day declarations in a bankruptcy proceeding as a helpful model.