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:
“[The Republican Party] consists of those who, believing in the doctrine that mankind are capable of governing themselves and hating hereditary power as an insult to the reason and an outrage to the rights of men, are naturally offended at every public measure that does not appeal to the understanding and to the general interest of the community.”
—James Madison (1751–1836)
“What I am anxious to do is to get the best bill possible with the least amount of friction.... I wish to avoid [splitting our party]. I shall do all in my power to retain the corporation tax as it is now and also force a reduction of the [tariff] schedules. It is only when all other efforts fail that I’ll resort to headlines and force the people into this fight.”
—William Howard Taft (1857–1930)
“And what other great nation has statutes and ordinances as just as this entire law that I am setting before you today? But take care and watch yourselves closely, so as neither to forget the things that your eyes have seen nor to let them slip from your mind all the days of your life; make them known to your children and your children’s children...”
—Bible: Hebrew, Deuteronomy 4:8,9.