kaal:claim:1908473-032

Allocating super-voting stock to contingent capital holders satisfies Delaware's legitimate business purpose requirement, because the allocation serves to avoid insolvency and dissolution of the institution.

Source quote, verbatim

Allocating super-voting stock, as proposed herein, would be for the legitimate business purpose of avoiding both insolvency and dissolution.

From

Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011), IV.B.2.b. U.S. Law, p. 43
https://ssrn.com/abstract=1908473 · source PDF

Cite as

Wulf A. Kaal, Christoph Henkel, Contingent Capital with Sequential Triggers (2011). SSRN: https://ssrn.com/abstract=1908473

Holds when

Delaware permits alternative voting arrangements if the charter provides for them or is amended
Increases are limited if inequitable or in breach of fiduciary duty

Classification

conditionsupport: arguedgovernance-design

Verify

The quote above is an exact substring of the source PDF, whose sha256 is 9d578dac663357529edd1f6453fcfe69bdc59ac882408d9edfde5a4c2916befa. Extraction method: pdf-text-layer.
Attestation record: colloquium/attestations/fe0793eab17b17fa...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/1908473-032.md | sha256sum