Court Of Chancery Clarifies Ultra Vires Statute
Posted In Corporate Charters
Southeastern Pennsylvania Transportation Authority v. Volgenau, C.A. 6354-VCN (August 31, 2012)
Section 124 of the Delaware General Corporation Code sets out the Delaware limits on the common law doctrine of ultra vires. This decision holds that Section 124 does not limit suits for breach of fiduciary duty, but does protect corporate transactions that have closed from some attacks alleging a lack of power to do the transaction.
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