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Delaware Supreme Court rules corporate relocations for legal protection are judged less strictly.
The Delaware Supreme Court ruled that a corporation's decision to reincorporate in another state to reduce future litigation risks is subject to the business judgment rule, not the stricter entire fairness standard.
This decision in Maffei v. Palkon clarifies that avoiding potential future liabilities does not trigger the higher standard, emphasizing that the timing and specificity of the benefit are key factors.
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La Corte Suprema de Delaware dictamina que las reubicaciones corporativas para protección legal son juzgadas menos estrictamente.