Court Of Chancery Explains When Actions Are Void
Posted In Corporate Charters
Klaassen v. Allegro Development Corporation, C.A. 8676-VCL (October 11, 2013)
There is still an important distinction under Delaware law between actions that are void and those that are merely voidable. For only voidable actions may be ratified. This decision traces the history of that distinction with respect to calling of directors' meetings. Only meetings called in violation of the bylaws or certificate of incorporation are void. Others subject to some equitable attack are still able to be ratified.
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