The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sat, 18 Apr 2026 11:30:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png Delaware Supreme Court Upholds Constitutionality of SB21 Provisions Providing Safe Harbors for Controlling Stockholder Transactions – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 Delaware Supreme Court Upholds Constitutionality of SB21 Provisions Providing Safe Harbors for Controlling Stockholder Transactions https://corpgov.law.harvard.edu/2026/03/14/delaware-supreme-court-upholds-constitutionality-of-sb21-provisions-providing-safe-harbors-for-controlling-stockholder-transactions/?utm_source=rss&utm_medium=rss&utm_campaign=delaware-supreme-court-upholds-constitutionality-of-sb21-provisions-providing-safe-harbors-for-controlling-stockholder-transactions https://corpgov.law.harvard.edu/2026/03/14/delaware-supreme-court-upholds-constitutionality-of-sb21-provisions-providing-safe-harbors-for-controlling-stockholder-transactions/#respond Sat, 14 Mar 2026 11:30:00 +0000 https://corpgov.law.harvard.edu/?p=179712?d=20260313153513EDT Posted by Arthur R. Bookout, Edward B. Micheletti and Joseph O. Larkin, Skadden, Arps, Slate, Meagher & Flom LLP, on Saturday, March 14, 2026
Editor's Note:

Arthur R. Bookout, Edward B. Micheletti, and Joseph O. Larkin are Partners at Skadden, Arps, Slate, Meagher & Flom LLP. This post is based on a Skadden memorandum by Mr. Bookout, Mr. Micheletti, Mr. Larkin, Cliff C. Gardner, Jenness E. Parker, and Faiz Ahmad, and is part of the Delaware law series; links to other posts in the series are available here.

Executive Summary

  • What’s new: The Delaware Supreme Court upheld the constitutionality of amendments to the DGCL under SB21, which provide procedural safe harbors for transactions involving controlling stockholders.
  • Why it matters: The decision shields directors, officers and controlling stockholders from equitable relief and damages if safe harbor provisions are met.
  • What to do next: Companies should ensure that transactions with controlling stockholders are approved by an informed committee of disinterested directors and/or disinterested minority stockholders to benefit from the safe harbor protections.

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