DOVER, Del.- A bill aimed at reinforcing Delaware’s corporate code passed the Senate Thursday, it now heads to the House Judiciary committee.
Senate Bill 21 seeks to clarify business laws in an effort to keep major corporations in the state, which provide a significant source of revenue.
The legislation comes in response to several high-profile legal cases that prompted large companies to leave Delaware. Supporters, including Sen. Darius Brown, argue the bill will help maintain the state’s leadership in corporate governance and foster a business-friendly environment.
"Their expertise and insight ensured that SB21 reflects the evolving needs of modern businesses while preserving the principles that have made Delaware's corporate legal environment a gold standard." Brown said.
However, critics warn the measure could have unintended consequences, potentially harming the state's economy, pensions, retirement funds, and everyday investors. Some have raised concerns that the changes could shift the balance of corporate power in ways that negatively impact shareholders.
Gov. Matt Meyer has urged both chambers of the General Assembly to pass the bill quickly.
"Today, we are in one of those moments. We must once again demonstrate why we retain an unparalleled reputation for clarity, predictability and fairness in global markets. That is why I am urging both chambers in the state’s legislature to move with the urgency this issue deserves and to pass Senate Bill 21 as quickly as possible.”
If approved by the Senate, the bill will move to the House for consideration.