On January 24, 2024, the Delaware Court of Chancery held that when a controller affirmatively sells stock or exercises its voting power to alter a corporation’s status quo, it may owe fiduciary duties of good faith and care to not intentionally, or through grossly negligent action, harm the corporation or its minority stockholders. Additionally, the court held that when analyzing whether a controller complied with this standard of conduct, it would apply the enhanced scrutiny standard of review.
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