The Delaware General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute governing corporate law in the U.S. state of Delaware. While most small corporations do not have a 2/3 vote requirement, in the exact opposite, most large corporations especially those incorporated in Delaware, do have a 2/3 vote requirement. A company that requires a 2/3 super-majority of shares to vote in favor of a motion can grant, in effect, veto power to a shareholder or block of shareholders that own controlling interest, which is more than 1/3 of the shares. Thus in some cases a single entity can essentially maintain controlling interest with only 33.4% of the outstanding shares. Over 50% of U.S. publicly traded corporations and 60% of the Fortune 500 companies are incorporated in that state.
Read more about Delaware General Corporation Law: History, General Benefits, Legal Benefits, Tax Benefits and Burdens
Famous quotes containing the words general, corporation and/or law:
“It is a general popular error to suppose the loudest complainers for the public to be the most anxious for its welfare.”
—Edmund Burke (1729–1797)
“It is truly enough said that a corporation has no conscience; but a corporation of conscientious men is a corporation with a conscience.”
—Henry David Thoreau (1817–1862)
“It has often been a solid Grief to me, when I have reflected on this glorious Nation, which is the Scene of publick Happiness and Liberty, that there are still Crowds of private Tyrants, against whom there neither is any Law now in Being, nor can there be invented any by the Wit of Man. These cruel Men are ill-natured husbands.”
—Richard Steele (1672–1729)