Delaware Law
Title 8 Corporations


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Delaware Laws | Title 8 Corporations

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TITLE 8 Corporations

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TITLE 8 Corporations

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CHAPTER 1. GENERAL CORPORATION LAW

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Subchapter I. Formation

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Sec. 101. Incorporators; how corporation formed; purposes.

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Sec. 102. Contents of certificate of incorporation.

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Sec. 103. Execution, acknowledgment, filing, recording and effective date of original certificate of incorporation and other instruments; exceptions.

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Sec. 104. Certificate of incorporation; definition.

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Sec. 105. Certificate of incorporation and other certificates; evidence.

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Sec. 106. Commencement of corporate existence.

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Sec. 107. Powers of incorporators.

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Sec. 108. Organization meeting of incorporators or directors named in certificate of incorporation.

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Sec. 109. Bylaws.

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Sec. 110. Emergency bylaws and other powers in emergency.

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Sec. 111. Jurisdiction to interpret, apply, enforce or determine the validity of corporate instruments and provisions of this title.

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Sec. 112. Access to proxy solicitation materials.

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Sec. 113. Proxy expense reimbursement.

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Sec. 114. Application of chapter to nonstock corporations.

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Subchapter II. Powers

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Sec. 121. General powers.

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Sec. 122. Specific powers.

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Sec. 123. Powers respecting securities of other corporations or entities.

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Sec. 124. Effect of lack of corporate capacity or power; ultra vires.

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Sec. 125. Conferring academic or honorary degrees.

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Sec. 126. Banking power denied.

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Sec. 127. Private foundation; powers and duties.

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Subchapter III. Registered Office and Registered Agent

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Sec. 131. Registered office in State; principal office or place of business in State.

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Sec. 132. Registered agent in State; resident agent.

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Sec. 133. Change of location of registered office; change of registered agent.

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Sec. 134. Change of address or name of registered agent.

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Sec. 135. Resignation of registered agent coupled with appointment of successor.

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Sec. 136. Resignation of registered agent not coupled with appointment of successor.

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Subchapter IV. Directors and Officers

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Sec. 141. Board of directors; powers; number, qualifications, terms and quorum; committees; classes of directors; nonstock corporations; reliance upon books; action without meeting; removal.

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Sec. 142. Officers; titles, duties, selection, term; failure to elect; vacancies.

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Sec. 143. Loans to employees and officers; guaranty of obligations of employees and officers.

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Sec. 144. Interested directors; quorum.

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Sec. 145. Indemnification of officers, directors, employees and agents; insurance.

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Sec. 146. Submission of matters for stockholder vote.

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Subchapter V. Stock and Dividends

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Sec. 151. Classes and series of stock; redemption; rights.

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Sec. 152. Issuance of stock; lawful consideration; fully paid stock.

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Sec. 153. Consideration for stock.

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Sec. 154. Determination of amount of capital; capital, surplus and net assets defined.

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Sec. 155. Fractions of shares.

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Sec. 156. Partly paid shares.

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Sec. 157. Rights and options respecting stock.

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Sec. 158. Stock certificates; uncertificated shares.

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Sec. 159. Shares of stock; personal property, transfer and taxation.

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Sec. 160. Corporation's powers respecting ownership, voting, etc., of its own stock; rights of stock called for redemption.

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Sec. 161. Issuance of additional stock; when and by whom.

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Sec. 162. Liability of stockholder or subscriber for stock not paid in full.

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Sec. 163. Payment for stock not paid in full.

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Sec. 164. Failure to pay for stock; remedies.

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Sec. 165. Revocability of preincorporation subscriptions.

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Sec. 166. Formalities required of stock subscriptions.

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Sec. 167. Lost, stolen or destroyed stock certificates; issuance of new certificate or uncertificated shares.

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Sec. 168. Judicial proceedings to compel issuance of new certificate or uncertificated shares.

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Sec. 169. Situs of ownership of stock.

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Sec. 170. Dividends; payment; wasting asset corporations.

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Sec. 171. Special purpose reserves.

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Sec. 172. Liability of directors and committee members as to dividends or stock redemption.

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Sec. 173. Declaration and payment of dividends.

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Sec. 174. Liability of directors for unlawful payment of dividend or unlawful stock purchase or redemption; exoneration from liability; contribution among directors; subrogation.

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Subchapter VI. Stock Transfers

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Sec. 201. Transfer of stock, stock certificates and uncertificated stock.

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Sec. 202. Restrictions on transfer and ownership of securities.

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Sec. 203. Business combinations with interested stockholders.

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Subchapter VII. Meetings, Elections, Voting and Notice

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Sec. 211. Meetings of stockholders.

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Sec. 212. Voting rights of stockholders; proxies; limitations.

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Sec. 213. Fixing date for determination of stockholders of record.

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Sec. 214. Cumulative voting.

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Sec. 215. Voting rights of members of nonstock corporations; quorum; proxies.

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Sec. 216. Quorum and required vote for stock corporations.

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Sec. 217. Voting rights of fiduciaries, pledgors and joint owners of stock.

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Sec. 218. Voting trusts and other voting agreements.

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Sec. 219. List of stockholders entitled to vote; penalty for refusal to produce; stock ledger.

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Sec. 220. Inspection of books and records.

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Sec. 221. Voting, inspection and other rights of bondholders and debenture holders.

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Sec. 222. Notice of meetings and adjourned meetings.

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Sec. 223. Vacancies and newly created directorships.

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Sec. 224. Form of records.

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Sec. 225. Contested election of directors; proceedings to determine validity.

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Sec. 226. Appointment of custodian or receiver of corporation on deadlock or for other cause.

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Sec. 227. Powers of Court in elections of directors.

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Sec. 228. Consent of stockholders or members in lieu of meeting.

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Sec. 229. Waiver of notice.

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Sec. 230. Exception to requirements of notice.

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Sec. 231. Voting procedures and inspectors of elections.

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Sec. 232. Notice by electronic transmission.

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Sec. 233. Notice to stockholders sharing an address.

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Subchapter VIII. Amendment of Certificate of Incorporation; Changes in Capital and Capital Stock

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Sec. 241. Amendment of certificate of incorporation before receipt of payment for stock.

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Sec. 242. Amendment of certificate of incorporation after receipt of payment for stock; nonstock corporations.

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Sec. 243. Retirement of stock.

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Sec. 244. Reduction of capital.

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Sec. 245. Restated certificate of incorporation.

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Sec. 246. [Reserved.]

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Subchapter IX. Merger, Consolidation or Conversion

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Sec. 251. Merger or consolidation of domestic corporations.

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Sec. 252. Merger or consolidation of domestic and foreign corporations; service of process upon surviving or resulting corporation.

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Sec. 253. Merger of parent corporation and subsidiary or subsidiaries.

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Sec. 254. Merger or consolidation of domestic corporation and joint-stock or other association.

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Sec. 255. Merger or consolidation of domestic nonstock corporations.

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Sec. 256. Merger or consolidation of domestic and foreign nonstock corporations; service of process upon surviving or resulting corporation.

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Sec. 257. Merger or consolidation of domestic stock and nonstock corporations.

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Sec. 258. Merger or consolidation of domestic and foreign stock and nonstock corporations.

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Sec. 259. Status, rights, liabilities, of constituent and surviving or resulting corporations following merger or consolidation.

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Sec. 260. Powers of corporation surviving or resulting from merger or consolidation; issuance of stock, bonds or other indebtedness.

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Sec. 261. Effect of merger upon pending actions.

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Sec. 262. Appraisal rights

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Sec. 263. Merger or consolidation of domestic corporations and partnerships.

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Sec. 264. Merger or consolidation of domestic corporation and limited liability company.

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Sec. 265. Conversion of other entities to a domestic corporation.

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Sec. 266. Conversion of a domestic corporation to other entities.

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Sec. 267. Merger of parent entity and subsidiary corporation or corporations.

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Subchapter X. Sale of Assets, Dissolution and Winding Up

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Sec. 271. Sale, lease or exchange of assets; consideration; procedure.

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Sec. 272. Mortgage or pledge of assets.

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Sec. 273. Dissolution of joint venture corporation having 2 stockholders.

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Sec. 274. Dissolution before issuance of shares or beginning of business; procedure.

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Sec. 275. Dissolution generally; procedure.

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Sec. 276. Dissolution of nonstock corporation; procedure.

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Sec. 277. Payment of franchise taxes before dissolution or merger.

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Sec. 278. Continuation of corporation after dissolution for purposes of suit and winding up affairs.

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Sec. 279. Trustees or receivers for dissolved corporations; appointment; powers; duties.

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Sec. 280. Notice to claimants; filing of claims.

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Sec. 281. Payment and distribution to claimants and stockholders.

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Sec. 282. Liability of stockholders of dissolved corporations.

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Sec. 283. Jurisdiction.

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Sec. 284. Revocation or forfeiture of charter; proceedings.

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Sec. 285. Dissolution or forfeiture of charter by decree of court; filing.

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Subchapter XI. Insolvency; Receivers and Trustees

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Sec. 291. Receivers for insolvent corporations; appointment and powers.

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Sec. 292. Title to property; filing order of appointment; exception.

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Sec. 293. Notices to stockholders and creditors.

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Sec. 294. Receivers or trustees; inventory; list of debts and report.

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Sec. 295. Creditors' proofs of claims; when barred; notice.

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Sec. 296. Adjudication of claims; appeal.

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Sec. 297. Sale of perishable or deteriorating property.

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Sec. 298. Compensation, costs and expenses of receiver or trustee.

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Sec. 299. Substitution of trustee or receiver as party; abatement of actions.

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Sec. 300. Employee's lien for wages when corporation insolvent.

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Sec. 301. Discontinuance of liquidation.

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Sec. 302. Compromise or arrangement between corporation and creditors or stockholders.

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Sec. 303. Proceeding under the Federal Bankruptcy Code of the United States; effectuation.

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Subchapter XII. Renewal, Revival, Extension and Restoration of Certificate of Incorporation or Charter

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Sec. 311. Revocation of voluntary dissolution.

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Sec. 312. Renewal, revival, extension and restoration of certificate of incorporation.

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Sec. 313. Renewal of certificate of incorporation or charter of religious, charitable, educational, etc., corporations.

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Sec. 314. Status of corporation.

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Subchapter XIII. Suits Against Corporations, Directors, Officers or Stockholders

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Sec. 321. Service of process on corporations.

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Sec. 322. Failure of corporation to obey order of court; appointment of receiver.

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Sec. 323. Failure of corporation to obey writ of mandamus; quo warranto proceedings for forfeiture of charter.

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Sec. 324. Attachment of shares of stock or any option, right or interest therein; procedure; sale; title upon sale; proceeds.

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Sec. 325. Actions against officers, directors or stockholders to enforce liability of corporation; unsatisfied judgment against corporation.

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Sec. 326. Action by officer, director or stockholder against corporation for corporate debt paid.

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Sec. 327. Stockholder's derivative action; allegation of stock ownership.

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Sec. 328. Effect of liability of corporation on impairment of certain transactions.

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Sec. 329. Defective organization of corporation as defense.

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Sec. 330. Usury; pleading by corporation.

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Subchapter XIV. Close Corporations; Special Provisions

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Sec. 341. Law applicable to close corporation.

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Sec. 342. Close corporation defined; contents of certificate of incorporation.

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Sec. 343. Formation of a close corporation.

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Sec. 344. Election of existing corporation to become a close corporation.

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Sec. 345. Limitations on continuation of close corporation status.

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Sec. 346. Voluntary termination of close corporation status by amendment of certificate of incorporation; vote required.

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Sec. 347. Issuance or transfer of stock of a close corporation in breach of qualifying conditions.

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Sec. 348. Involuntary termination of close corporation status; proceeding to prevent loss of status.

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Sec. 349. Corporate option where a restriction on transfer of a security is held invalid.

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Sec. 350. Agreements restricting discretion of directors.

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Sec. 351. Management by stockholders.

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Sec. 352. Appointment of custodian for close corporation.

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Sec. 353. Appointment of a provisional director in certain cases.

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Sec. 354. Operating corporation as partnership.

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Sec. 355. Stockholders' option to dissolve corporation.

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Sec. 356. Effect of this subchapter on other laws.

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Subchapter XV. Foreign Corporations

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Sec. 371. Definition; qualification to do business in State; procedure.

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Sec. 372. Additional requirements in case of change of name, change of business purpose or merger or consolidation.

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Sec. 373. Exceptions to requirements.

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Sec. 374. Annual report.

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Sec. 375. Failure to file report.

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Sec. 376. Service of process upon qualified foreign corporations.

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Sec. 377. Change of registered agent.

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Sec. 378. Penalties for noncompliance.

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Sec. 379. Banking powers denied.

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Sec. 380. Foreign corporation as fiduciary in this State.

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Sec. 381. Withdrawal of foreign corporation from State; procedure; service of process on Secretary of State.

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Sec. 382. Service of process on nonqualifying foreign corporations.

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Sec. 383. Actions by and against unqualified foreign corporations.

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Sec. 384. Foreign corporations doing business without having qualified; injunctions.

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Sec. 385. Filing of certain instruments with Recorder of Deeds not required.

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Subchapter XVI. Domestication and Transfer

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Sec. 388. Domestication of non-United States entities.

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Sec. 389. Temporary transfer of domicile into this State.

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Sec. 390. Transfer, domestication or continuance of domestic corporations.

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Subchapter XVII. Miscellaneous Provisions

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Sec. 391. Taxes and fees payable to Secretary of State upon filing certificate or other paper.

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Sec. 392. [Reserved.]

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Sec. 393. Rights, liabilities and duties under prior statutes.

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Sec. 394. Reserved power of State to amend or repeal chapter; chapter part of corporation's charter or certificate of incorporation.

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Sec. 395. Corporations using "trust" in name, advertisements and otherwise; restrictions; violations and penalties; exceptions.

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Sec. 396. Publication of chapter by Secretary of State; distribution.

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Sec. 397. Penalty for unauthorized publication of chapter.

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Sec. 398. Short title.

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CHAPTER 5. CORPORATION FRANCHISE TAX

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Sec. 501. Corporations subject to and exempt from franchise tax.

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Sec. 502. Annual franchise tax report; contents; failure to file and pay tax; duties of Secretary of State.

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Sec. 503. Rates and computation of franchise tax [Effective until Jan. 1, 2014]

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Sec. 503. Rates and computation of franchise tax [Effective Jan. 1, 2014]

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Sec. 504. Collection and disposition of tax; tentative return and tax; penalty interest; investigation of annual franchise tax report; notice of additional tax due.

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Sec. 505. Review and refund; jurisdiction and power of the Secretary of State; appeal.

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Sec. 506. Fund for payment of refunds.

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Sec. 507. Collection of tax; preferred debt.

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Sec. 508. Injunction against exercise of franchise or transacting business.

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Sec. 509. Further remedy in Court of Chancery; appointment of receiver or trustee; sale of property.

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Sec. 510. Failure to pay tax or file a complete annual report for 1 year; charter void; extension of time.

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Sec. 511. Repeal of charters of delinquent corporations; report to Governor and proclamation.

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Sec. 512. Filing and publication of proclamation.

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Sec. 513. Acting under proclaimed charter; penalty.

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Sec. 514. Mistakes in proclamation; correction.

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Sec. 515. Annual report of Secretary of State.

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Sec. 516. Retaliatory taxation and regulation; imposition.

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Sec. 517. Duties of Attorney General.

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Sec. 518. Relief for corporations with assets in certain unfriendly nations.

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CHAPTER 6. PROFESSIONAL SERVICE CORPORATIONS

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Sec. 601. Legislative intent.

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Sec. 602. Short title.

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Sec. 603. Definitions.

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Sec. 604. Exemptions.

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Sec. 605. Authority to organize; law governing.

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Sec. 606. Number of directors; officers.

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Sec. 607. Rendition of professional services through licensed officers, employees and agents.

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Sec. 608. Chapter not to affect professional relationship; legal liabilities and standards for professional conduct; negligence; attachment of assets.

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Sec. 609. Engaging in other business prohibited.

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Sec. 610. Issuance of capital stock to licensed individuals; voting trust agreements prohibited; holding of stock by shareholder's estate.

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Sec. 611. Disqualification of officer, shareholder, agent or employee.

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Sec. 612. Sale or transfer of shares.

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Sec. 613. Price for shares.

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Sec. 614. Perpetual corporate existence.

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Sec. 615. Conversion into business corporation.

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Sec. 616. Time for transfer of shares upon death or disqualification.

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Sec. 617. Corporate name.

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Sec. 618. Applicability of General Corporation Law; consolidation or merger of corporations; annual report.

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Sec. 619. Construction of chapter.

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