Cozen O’Connor: Director Vacancies Can Be Filled Using Stockholder Vote [Delaware Court Business Insider]

Director Vacancies Can Be Filled Using Stockholder Vote [Delaware Court Business Insider]

The Delaware General Corporation Law, like the business corporation law of most states, provides in Section 223(a) that vacancies on a corporate board can be filled through appointment of new directors by the existing directors unless the certificate of incorporation or bylaws provide otherwise. However, unlike the corporation law in other states, Section 223(c) of the DGCL allows stockholders in certain circumstances to petition the Court of Chancery to direct that a special stockholders' meeting take place in order to fill the vacancies through a stockholder vote. Section 223(c) commits the decision to grant the petition to the discretion of the court.

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Barry M. Klayman

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