Portfolio 1-4th: The Delaware Corporation: Legal Aspects of Organization and Operation

I. Why Incorporate in Delaware?

II. The Process of Incorporation
A. Preparation and Filing of the Certificate of Incorporation
1. In general
2. Name
3. Purpose
4. Stock
a. Number and par value
b. Voting
c. Redemption
d. Dividends
e. Rights on dissolution
f. Conversion
g. Blank check power
5. Initial directors
6. Optional provisions
a. In general
b. Supermajority votes
c. Staggered board
d. Denial of the right to act by written consent
e. Limitation on liability
f. Corporate opportunity
g. Other optional provisions
B. Changes to the Certificate of Incorporation
1. Corrections
2. Amendments
3. Class voting
4. Board power
C. The Organizational Meeting
D. Bylaws
1. Stockholders' meetings
2. Board of directors
3. Committees
4. Indemnification
5. Titles and duties of officers
E. Issuance of Stock
1. Consideration
2. Partly paid shares
3. Fractional shares
4. Certificates

III. The Role of the Stockholders
. Introductory Material
A. Identifying the Stockholders
B. The Stockholders' Meeting
1. Annual meetings
2. Special meetings
3. Notice
4. Participation by remote communication
5. Scheduling meetings
6. Record date
C. The Voting Process
1. Votes
2. Proxies
3. Inspectors of election
4. Vote required
D. Election of Directors
E. Filling of Board Vacancies
F. Removal of Directors
G. Miscellaneous Stockholder Votes
H. Action by Consent
I. Majority Stockholders' Responsibilities
J. Stockholders' Right to Inspect Corporate Books and Records
1. Stockholder lists
2. Inspection of corporate books and records
K. Stockholders' Right to Seek a Custodian or Receiver

IV. The Role of the Directors
A. Management, Delegation, and Supervision
B. Meetings of Directors
C. Legal Standards Applicable to Directors
1. Duty of care
2. Interested transactions—duty of loyalty
3. Corporate opportunities
4. Inequitable purpose
5. Dismissal of derivative litigation
6. Board responses to hostile takeovers and selling the company
a. Defensive actions
b. Selling the company
D. Dividends and Stock Repurchases
1. Repurchases and redemptions
2. Dividends
3. Determination of surplus
E. Indemnification
F. Directors' Right to Inspection of Books and Records
G. Recommendation of Directors

V. Mergers, Consolidations, and Business Combinations
. Introductory Material
A. Governing Statutes
1. General requirements
2. Stockholder approval
3. Holding company mergers
4. Short-form mergers
B. Mergers and the Courts
C. Appraisal Rights
D. [8 DE 203] Section 203 of the General Corporation Law
1. Adoption of [8 DE 203] §203
2. Operation of [8 DE 203] §203
3. Interpretation of [8 DE 203] §203
E. Stockholder Rights Plans

VI. Jurisdiction of the Delaware Courts

VII. Close Corporations