MBCA DGCL

Purpose 2.02: not required to state purpose 102: Must state an omnibus purpose of
formation
Capital Restrictions 6.21 153 15!
"istro to s#$ restrictions 6.!0 %nsol&enc' tests and (quit'
)est* no +stated capital+ rules
,.33 "irectors liabilit' for -nla.ful
"istro
15! definition of capital surplus
2!!:
1/0: "i&idend pa'ments* dependent on
surplus or net profits
1/!: "irectors liable for unla.ful
di&idend
%nterested )ransactions ,.60#0ubc$apter 1
,.61 2 pro&ides safe $arbor for
interested directors
more focused on process
1!! %nterested "irectors
Class of 0$ares 6.01 "3C4 151
Restrictions on 0#5 po.er M6C7 2.06 ,.01 ,.!0 10.012
10.0! 10.20
"3C4 108 1!1 1!2 2!2
%nterested )ransaction 0ubc$apter 1. ,.60
$as more detailed stat pro&isions to
lessen t$e need for liti9ation.
More Process
1!!:
"irector :urom ,.2! Ma;orit' <c$arter ma' sa' 1#3=
"irectors> "uties ,.30: 0tandards of conduct for
"irectors. more specification
about standards <less
liti9ation#case la.=
,.31 0tandards for 4iabilit'
define potential liabilit' for miscondut
"ut' of Care ,.30<a=<2= ;udicial doctrine
(?culpation of "irectors>
1iduciar' "ut'
2.02<b=<!=: c$arter ma' $a&e
pro&isions .$ic$ eliminates
liabilit' of directors e?cept
for intentional acts
102<b=</=: c$arter ma' contain
pro&ision t$at eliminates liabilit'
for breac$ of dut' but ma' not
for dut' of lo'alit' and ot$er
intentional acts
6usiness @ud9ment Rule ,.31
%deminification and
%nsurance for "irectors
,.50 2 ,.58
,.51: Permissible %demnification
,.52: Mandator' %demnification
,.58: (?clusi&it' of subcptr
1!5 102<b=<1=
1!5<f=: muc$ broader t$at ,.58 but
usuall' in&alidated if a9aisnt
public polic'
%nsurance for "irecotrs ,.5/
7llocation of Aotin9 Po.er: M6C7 ,.0! /.21 /.2, "3C4 1!1<d= 212<a=21! 216
Remo&al of 6d of "irectors M6C7 ,.0,2,.10 1!1<B= 223
0$are$olders 2 mt9s &otin9 /.01 211
0#5 :urom Aotin9 /.25 2 qurom at least 51C of t$ose
entitled to &ote <default 2
ma' be 9reater=. Aote D(0
needs to e?ceed Aote EF.
212 216 2 need at least 1#3 present for
qurom* at least 51C of qurom elect
directors
0#5 Aotin9 for "irectors /.2, 216
Cumulati&e Aotin9 /.2,. C$arter must state cumulati&e.
Fnl' for directors unless notice
21! 2 for directors no ot$er e?ceptions
0ta99ered "irectors ,.06 1!1<d=
Remo&al of "irector b' s#$ ,.0, .# or .#o cause. c$arte ma'
sa' for cause
Eeed enou9$ &otes as if to elect t$e
director
%f cumulati&e &otin9 2 need enou9$
&otes as if to elect
1!1<B= .# or .#o cause
%f sta99ered 6d 2 onl' for cause
%f cumulati&e &otin9 2 need enou9$ as to
elect director
"emand Requirement /.!0 2 demand required unless
irreparable $arm
"emand not required if futile
"eri&ati&e 0uits /.!02!! Eot$in9G %s t$is all ;udiciall' createdG
4ess process orientatedG
%nd. Comm. /.!! 2 ct ne&er looBs at decision