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:
“Amid the pressure of great events, a general principle gives no help.”
—Georg Wilhelm Friedrich Hegel (1770–1831)
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“The law is a great thing,—because men are poor and weak, and bad. And it is great, because where it exists in its strength, no tyrant can be above it. But between you and me there should be no mention of law as the guide of conduct. Speak to me of honour, and of duty, and of nobility; and tell me what they require of you.”
—Anthony Trollope (1815–1882)