| SCR 42 | Passed | Wilson | This resolution designates April 6, 2025, as "National Tartan Day" and commemorates the outstanding achievements and contributions made by Scottish-Americans to the United States.
When the United States was first formed and the thirteen states selected their first governors, nine were of Scottish ancestry. All the members of the first American cabinet had Scottish ancestry. Delaware's first governor, John McKinly, was born in Northern Ireland of Scottish descent. Americans of Scottish descent have played a vibrant influential role in the development of this country. However, not until 1997 was this influence recognized by a single-year U.S. Senate.
Resolution that appeared in the Congressional Record of April 7, 1997. In 1998 National Tartan Day was officially recognized on a permanent basis when the U.S. Senate passed Senate Resolution 155 recognizing April 6th as National Tartan Day. This was followed by companion bill House Resolution 41, which was passed by the U.S. House of Representatives on March 9, 2005. President George W. Bush signed a Presidential Proclamation on April 4, 2008 making April 6 National Tartan Day. In April of 2008, then Governor Minner issued a statement celebrating the accomplishments of Scots-Irish Americans in the First State as part of a Scots/Scots-Irish Heritage Month.
April 6 commemorates the signing of the Declaration of Arbroath in 1320, which asserted Scotland's sovereignty over English territorial claims, and which was a significant influence on the American Declaration of Independence.
Canada has been celebrating "National Tartan Day" since 1993. The idea and motivation for creating a similar American holiday was provided by the Scottish Coalition, a group of national Scottish-American cultural organizations. | COMMEMORATING THE OUTSTANDING ACHIEVEMENTS AND CONTRIBUTIONS MADE BY SCOTTISH AMERICANS TO THE UNITED STATES BY RECOGNIZING APRIL 6, 2025, AS "TARTAN DAY" IN THE STATE OF DELAWARE. |
| SB 92 | Committee | Poore | Section 2527 of Title 16, which will become effective on September 30, 2025, originates from Section 27 of the Uniform Law Commission’s Uniform Health-Care Decisions Act. The Uniform Law Commission found that the word “other” was added in error to the final Uniform Health-Care Decisions Act. This Act adopts this correction by deleting the word “other” from § 2527 of Title 16.
This Act takes effect on September 30, 2025, to coincide with the effective date of § 2527 of Title 16. | AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO THE UNIFORM HEALTH-CARE DECISIONS ACT. |
| SB 93 | Committee | Poore | This Act updates the terminology used to describe or citations used to reference those who make financial or health-care decisions on behalf of a principal or individual, including when that principal or individual lacks capacity. This Act takes effect on September 30, 2025, to coincide with when the Delaware Uniform Health-Care Decisions Act of 2023 (DUHCDA 2023) takes effect.
Section 1 of this Act amends § 3982 of Title 12 by:
(1) Removing the phrase “durable power of attorney for health-care decisions” and instead citing to the definition of “advance health-care directive” under DUHCDA 2023. A durable power of attorney for health-care decisions, or other similar variations on that phrase, are synonyms for a power of attorney for health care. A power of attorney for health care is included in the definition of advance health-care directive under DUHCDA 2023.
For shorthand, elsewhere in this Synopsis this change will be referred to as “citing to the DUHCDA 2023 to remove synonyms.”
(2) Changing "surrogate" to "default surrogate" to align with the new definitions of "surrogate" and "default surrogate" under DUHCDA 2023.
For shorthand, elsewhere in this Synopsis this change will be referred to as “aligning the term ‘surrogate’ with the DUHCDA 2023”.
(3) Added reference to an agent under a durable power of attorney to § 3983(4)a. since it is in § 3983(4)b. and those paragraphs should mirror each other, as paragraph (4)a. handles a situation when there is no decision maker willing or able to serve and paragraph (4)b. addresses a situation where a decision maker is determined unsuitable.
Section 2 of this Act amends § 3983 of Title 12 by aligning the term ‘surrogate’ with the DUHCDA 2023.
Section 3 of this Act amends § 1121 of Title 16 by:
(1) Completing the list of internal citations.
(2) Repealing § 1121(b)(40) because § 1122 defines the decision makers to whom third-party decision making passes when an individual lacks capacity to make decisions. Additionally, § 1121 is where resident rights are listed, not the rights of third parties.
Section 4 of this Act revises § 1122 of Title 16 by:
(1) Revising the description of legal standards for when decision making authority passes to a third party under the processes listed, including deleting that a standard is when a resident is "unable to communicate with others" and adding a reference to federal law since a representative payee under § 205(j) of the Social Security Act is included in the list.
(2) Citing to the DUHCDA 2023 to remove synonyms.
(3) Aligning the term ‘surrogate’ with the DUHCDA 2023.
Section 5 of this Act amends § 1145 of Title 16 by:
(1) Citing to the DUHCDA 2023 to remove synonyms.
(2) Aligning the term ‘surrogate’ with the DUHCDA 2023.
Section 6 of this Act amends § 2503A of Title 16 by:
(1) Citing to the DUHCDA 2023 to remove synonyms.
(2) Aligning the term ‘surrogate’ with the DUHCDA 2023.
Section 7 of this Act amends § 5530 of Title 16 by:
(1) Citing to the DUHCDA 2023 to remove synonyms.
(2) Repealing subsection (e) because it refers to a list of individuals that was removed by SB 309 (GA 152) in favor of citing directly to DUHCDA 2023.
Section 8 of this Act amends § 5531 of Title 16 by citing to the DUHCDA 2023 to remove synonyms.
Section 9 of this Act amends § 2718 of Title 21 by:
(1) Correcting the word “advanced” to “advance” in “advance care directive”.
(2) Listing the advance planning documents referenced in the citation to § 9706(h) of Title 16. Section 9706(h) allows the promulgation of regulations related to EMS provider compliance with identified advance planning documents. It is not the section that establishes or defines the advance planning documents.
Section 10 of this Act amends § 3912 of Title 31 by changing the term “power of attorney” to “agent” because an agent is the actor whereas the power of attorney is the document or grant of authority to act as agent.
Section 11 of this Act is an effective date. This Act takes effect on September 30, 2025.
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.
| AN ACT TO AMEND TITLE 12, TITLE 16, TITLE 21, AND TITLE 31 OF THE DELAWARE CODE RELATING TO THIRD-PARTY DECISION MAKING. |
| HB 115 | Committee | Phillips | This Act prohibits discrimination based on weight, height, or body size in transportation, public accommodation, housing, commerce and trade, employment, jury selection, education, and public administration.
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. | AN ACT TO AMEND THE DELAWARE CODE RELATING TO THE PROHIBITION OF DISCRIMINATION BASED ON WEIGHT, HEIGHT, OR BODY SIZE. |
| HA 1 to HB 97 | PWB | K. Williams | This Act clarifies that DSCYF staff that work in schools are considered "other student support personnel" and are required to hold a permit or other applicable license if they are to have direct, unsupervised contact with students. | |
| HA 1 to HB 79 | PWB | Morrison | This Amendment to HB 79 adds language to ensure that the law conforms to the current practice regarding SRO temporary absences. This Amendment also changes the effective date from August 1, 2025, to August 1, 2026, to provide the Department of Education with additional time to prepare to implement HB 79. | |
| SCR 46 | Passed | Sokola | This Concurrent Resolution provides for a Joint Session of the Senate and the House of Representatives to be convened for the purpose of hearing an address by the Honorable Matthew S. Meyer, Governor of the State of Delaware.
| PROVIDING FOR A JOINT SESSION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES TO BE CONVENED FOR THE PURPOSE OF HEARING AN ADDRESS BY THE HONORABLE MATTHEW S. MEYER, GOVERNOR OF THE STATE OF DELAWARE. |
| SA 1 to HB 38 | PWB | Paradee | This Amendment provides that House Bill No. 38 takes effect 1 year after its enactment into law. | |
| SB 94 | Committee | Poore | This Act updates the Respiratory Care Advisory Council to the Board of Medical Licensure and Discipline’s enabling act to allow qualified licensed respiratory therapists to perform all duties associated with extracorporeal life support. Under the current law, respiratory therapists are authorized to assist with such support but may not administer medication during the process. As a result, a therapist is required to wait for another licensed professional to do so, resulting in delays to patient care. This bill eliminates this delay in patient care and allows qualified respiratory therapists to work within the full scope of their training.
This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual. | AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO RESPIRATORY CARE PRACTITIONERS. |
| SB 98 | Committee | Brown | This Act continues the practice of amending periodically the Delaware Limited Liability Company Act (“LLC Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of proposed amendments to the LLC Act.
Section 1 amends § 18-104(e) of the LLC Act, which addresses certain duties of a registered agent of a limited liability company. Amended § 18-104(e) specifies that a registered agent may not perform its duties or functions solely through the use of a virtual office, the retention by the agent of a mail forwarding service, or both. Amended § 18-104(e) defines “virtual office” as the performance of duties or functions solely through the internet or solely through other means of remote communication.
Section 2 amends § 18-106(e) of the LLC Act to provide that § 18-106(e) applies to ratification or waiver of a void or voidable act or transaction by any member, manager, or other person in respect of a limited liability company, in addition to acts or transactions by a limited liability company. This Section also amends § 18-106(e) to provide that ratification or waiver pursuant to § 18-106(e) may be express or implied, including by the statements, action, inaction, or acquiescence of or by the members, managers, or other persons. Further, this Section amends § 18-106(e) to clarify that in a circumstance in which § 18-106(e) requires notice of the ratification or waiver to be given, the giving of the notice is not a condition to the effectiveness of the ratification or waiver. The amendments to § 18-106(e) in this Section are intended to provide rules different from the rules applied in existing case law that § 18-106(e) is limited to ratification or waiver of a limited liability company’s own acts and transactions and that § 18-106(e) does not apply to ratification or waiver by conduct.
Section 3 amends § 18-203(b) of the LLC Act to confirm that, in addition to correcting a certificate of cancellation, a certificate of correction may nullify a certificate of cancellation.
Section 4 amends § 18-209(c) of the LLC Act to provide that a certificate of formation must be attached to a certificate of consolidation for a consolidation in which the resulting entity from such consolidation is a domestic limited liability company.
Section 5 amends § 18-211(a) of the LLC Act, which provides for the correction of certificates filed with the Secretary of State. The amendment confirms that, in addition to correcting a previously filed certificate, a certificate of correction may nullify a previously filed certificate by specifying the inaccuracy or defect with respect to such previously filed certificate and providing that the previously filed certificate is nullified. Such a provision is sufficient if it states that the previously filed certificate is nullified or void or uses words of similar meaning.
Section 6 amends § 18-302 of the LLC Act to confirm that a limited liability company agreement may be amended in connection with a division of a limited liability company and a merger of registered series of a limited liability company, as is specifically contemplated by §§ 18-217(f) and 18-221(e) of the LLC Act, respectively.
Section 7 amends § 18-1107(c) of the LLC Act to confirm that when the existence of a domestic limited liability company or registered series, or the registration of a foreign limited liability company, will cease by the filing of a certificate under the LLC Act, the full amount of the annual tax for the calendar year in which such certificate becomes effective is due and payable before the filing of such certificate.
Section 8 provides that the amendments to the LLC Act take effect on August 1, 2025.
| AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO THE DELAWARE LIMITED LIABILITY COMPANY ACT. |
| HB 107 | Committee | Yearick | This bill expands line-of-duty benefits to cover previously covered persons, such as retirees, whose death is the proximate result of actions by a person seeking retaliation against the previously covered person for performing the duties of their former office or position. | AN ACT TO AMEND TITLE 18 OF THE DELAWARE CODE RELATING TO LINE-OF-DUTY DEATH BENEFITS. |
| HB 108 | Committee | Yearick | This bill increases the personal income tax pension exclusion from $12,500 to $25,000. | AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO PERSONAL INCOME TAX MODIFICATIONS SUBTRACTED FROM FEDERAL ADJUSTED GROSS INCOME. |
| HB 109 | Committee | Hensley | This Act requires that each county reassess the value of real property in the county at least once every 10 years instead of the current 5 year requirement. | AN ACT TO AMEND TITLE 9 OF THE DELAWARE CODE RELATING TO THE FREQUENCY OF REASSESSMENT. |
| SA 1 to SB 79 | PWB | Wilson | This Amendment provides that an agency licensed by the Department of Services for Children, Youth & Their Families (“DSCYF” or “Department”) may prepare and file a social report.
This Amendment also specifies that the cost of a social report is to be covered by DSCYF (the Department). | |
| HB 111 | Committee | Phillips | This Act prohibits food establishments from providing any single-use food service items, whether plastic or not, unless specifically requested by a customer. This Act also requires a written notice to be provided to a food establishment or third-party delivery service that violates the Skip the Stuff Act allowing the entity to correct the violation within 30 days.
This Act is effective on January 1, 2026. | AN ACT TO AMEND TITLE 16 OF THE DELAWARE CODE RELATING TO REDUCING THE AUTOMATIC PROVISION OF SINGLE-USE EATING UTENSILS, CONDIMENT PACKETS, AND OTHER ITEMS. |
| HB 112 | Committee | Shupe | To protect the integrity of our elections, this Act provides that in order to vote, a voter, prior to being permitted to vote, must be able to present a photographic identification, specifically a Driver’s License or a Nondriver Identification Card issued by the Division of Motor Vehicles, or a United States Passport or a military identification card. In order to make obtaining an identification card easier on the general public, the first nondriver identification card issued by the Division shall be free, as opposed to the current fee of $40.00. Subsequent cards, upon expiration, will be issued for a reduced fee of $20.00. Department of Elections for each county will now be required to conduct at lest 2 countywide programs at locations reasonably convenient and accessible to the citizens. | AN ACT TO AMEND TITLES 15 AND 21 OF THE DELAWARE CODE RELATING TO PHOTOGRAPHIC IDENTIFICATION IN DELAWARE ELECTIONS AND OBTAINING NONDRIVER IDENTIFICATION CARDS. |
| SB 96 | Committee | Brown | This Act continues the practice of amending periodically the Delaware Revised Uniform Partnership Act (“GP Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of proposed amendments to the GP Act.
Section 1 amends § 15-111(e) of the GP Act, which addresses certain duties of a registered agent of a partnership. Amended § 15-111(e) specifies that a registered agent may not perform its duties or functions solely through the use of a virtual office, the retention by the agent of a mail forwarding service, or both. Amended § 15-111(e) defines “virtual office” as the performance of duties or functions solely through the internet or solely through other means of remote communication.
Section 2 amends § 15-118(a) of the GP Act, which provides for the correction of statements and certificates filed with the Secretary of State. The amendment confirms that, in addition to correcting a previously filed statement or certificate, a statement or certificate of correction may nullify a previously filed statement or certificate by specifying the inaccuracy or defect with respect to such previously filed statement or certificate and providing that the previously filed statement or certificate is nullified. Such a provision is sufficient if it states that the previously filed statement or certificate is nullified or void or uses words of similar meaning.
Section 3 amends § 15-202(g) of the GP Act to provide that § 15-202(g) applies to ratification or waiver of a void or voidable act or transaction by any partner or other person in respect of a partnership, in addition to acts or transactions by a partnership. This Section also amends § 15-202(g) to provide that ratification or waiver pursuant to § 15-202(g) may be express or implied, including by the statements, action, inaction, or acquiescence of or by partners or other persons. Further, this Section amends § 15-202(g) to clarify that in a circumstance in which § 15-202(g) requires notice of the ratification or waiver to be given, the giving of the notice is not a condition to the effectiveness of the ratification or waiver. The amendments to § 15-202(g) in this Section are intended to provide rules different from the rules applied in existing case law that § 18-106(e) of the Delaware Limited Liability Company Act, which is the same in all material respects as § 15-202(g), is limited to ratification or waiver of a limited liability company’s own acts and transactions and that § 18-106(e) of the Delaware Limited Liability Company Act does not apply to ratification or waiver by conduct.
Section 4 amends § 15-902(c) of the GP Act to provide that a statement of partnership existence must be attached to a certificate of consolidation for a consolidation in which the resulting entity from such consolidation is a domestic partnership.
Section 5 amends § 15-1102(a) of the GP Act to require that a statement of foreign qualification of a foreign limited liability partnership include the state, territory, possession or other jurisdiction or country where the foreign limited liability partnership was formed, the date of its formation and a statement from a partner that, as of the date of filing, the foreign limited liability partnership validly exists as a limited liability partnership under the laws of the jurisdiction of its formation. This Section also amends § 15-1102(a) to clarify that the number of partners required to be stated in a statement of foreign qualification is the number of partners of the foreign limited liability partnership at the time of the effectiveness of the statement of foreign qualification.
Section 6 amends § 15-1208(b) of the GP Act to confirm that if a statement of partnership existence will be cancelled pursuant to the filing of a statement or certificate under the GP Act, the full amount of the annual tax for the calendar year in which the statement or certificate becomes effective is due and payable before the filing of such statement or certificate.
Section 7 provides that the amendments to the GP Act take effect on August 1, 2025. | AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO THE DELAWARE REVISED UNIFORM PARTNERSHIP ACT. |
| SB 97 | Committee | Brown | This Act continues the practice of amending periodically the Delaware Revised Uniform Limited Partnership Act (“LP Act”) to keep it current and to maintain its national preeminence. The following is a section-by-section review of proposed amendments to the LP Act.
Section 1 amends § 17-104(e) of the LP Act, which addresses certain duties of a registered agent of a limited partnership. Amended § 17-104(e) specifies that a registered agent may not perform its duties or functions solely through the use of a virtual office, the retention by the agent of a mail forwarding service, or both. Amended § 17-104(e) defines “virtual office” as the performance of duties or functions solely through the internet or solely through other means of remote communication.
Section 2 amends § 17-106(e) of the LP Act to provide that § 17-106(e) applies to ratification or waiver of a void or voidable act or transaction by any partner or other person in respect of a limited partnership, in addition to acts or transactions by a limited partnership. This Section also amends § 17-106(e) to provide that ratification or waiver pursuant to § 17-106(e) may be express or implied, including by the statements, action, inaction, or acquiescence of or by partners or other persons. Further, this Section amends § 17-106(e) to clarify that in a circumstance in which § 17-106(e) requires notice of the ratification or waiver to be given, the giving of the notice is not a condition to the effectiveness of the ratification or waiver. The amendments to § 17-106(e) in this Section are intended to provide rules different from the rules applied in existing case law that § 18-106(e) of the Delaware Limited Liability Company Act, which is the same in all material respects as § 17-106(e), is limited to ratification or waiver of a limited liability company’s own acts and transactions and that § 18-106(e) of the Delaware Limited Liability Company Act does not apply to ratification or waiver by conduct.
Section 3 amends § 17-109(a) of the LP Act to provide that serving as a general partner of a limited partnership or as a liquidating trustee of a dissolved limited partnership is sufficient (without any requirement for execution by such person of the certificate of limited partnership) to (i) constitute such person’s consent to the appointment of the registered agent of the limited partnership (or, if there is none, the Secretary of State) as such person’s agent upon whom service of process may be made, and (ii) signify the consent of such general partner or liquidating trustee that any process when so served shall be of the same legal force and validity as if served upon such general partner or liquidating trustee within the State of Delaware.
Section 4 amends § 17-202(f) of the LP Act to provide that at any time a person who is not shown as a general partner on the certificate of limited partnership of a dissolved limited partnership is winding up the limited partnership’s affairs, the certificate of limited partnership shall be amended to add the name and business, residence or mailing address of each liquidating trustee unless the limited partners are the liquidating trustees, in which case the certificate of limited partnership shall be amended to state that the limited partners are winding up the limited partnership’s affairs. This Section also amends § 17-202 of the LP Act to add a new § 17-202(g) to provide that at any time a person who is not shown as a general partner associated with a registered series on the certificate of registered series of a dissolved registered series is winding up the registered series’ affairs, the certificate of registered series shall be amended to add the name and business, residence or mailing address of each liquidating trustee of the registered series unless the limited partners associated with the registered series are the liquidating trustees, in which case the certificate of registered series shall be amended to state that the limited partners associated with the registered series are winding up the registered series’ affairs.
Section 5 amends § 17-203(b) of the LP Act to confirm that, in addition to correcting a certificate of cancellation, a certificate of correction may nullify a certificate of cancellation.
Section 6 amends § 17-204(a)(3) of the LP Act to delete language addressing who signs a certificate of cancellation when the general partners are not winding up a dissolved limited partnership’s affairs because that is now addressed in the new § 17-204(e) of the LP Act. This Section also amends § 17-204(a)(12) of the LP Act to delete language addressing who signs a certificate of cancellation of certificate of registered series when the general partners associated with such series are not winding up the dissolved registered series’ affairs because that is now addressed at new § 17-204(e) of the LP Act. This Section further amends § 17-204 of the LP Act to add a new §17-204(e). New § 17-204(e) provides who signs certificates required by the LP Act to be signed by one or more general partners of a dissolved limited partnership when a person not shown on the certificate of limited partnership as a general partner of the limited partnership is winding up the affairs of the limited partnership. New § 17-204(e) also provides who signs certificates required by the LP Act to be signed by one or more general partners associated with a dissolved registered series when a person not shown on the certificate of registered series as a general partner associated with the registered series is winding up the affairs of the registered series.
Section 7 amends § 17-211(c) of the LP Act to provide that a certificate of limited partnership must be attached to a certificate of consolidation for a consolidation in which the resulting entity from such consolidation is a domestic limited partnership.
Section 8 amends § 17-213(a) of the LP Act, which provides for the correction of certificates filed with the Secretary of State. The amendment confirms that, in addition to correcting a previously filed certificate, a certificate of correction may nullify a previously filed certificate by specifying the inaccuracy or defect with respect to such previously filed certificate and providing that the previously filed certificate is nullified. Such a provision is sufficient if it states that the previously filed certificate is nullified or void or uses words of similar meaning.
Section 9 amends § 17-302(f) of the LP Act to confirm that a partnership agreement may be amended in connection with a division of a limited partnership and a merger of registered series of a limited partnership, as is specifically contemplated by §§ 17-220(f) and 17-224(e) of the LP Act, respectively.
Section 10 amends § 17-902(1) of the LP Act to provide that an application for registration as a foreign limited partnership shall be executed by any person authorized to execute the application on behalf of the foreign limited partnership (which may or may not be a general partner of the foreign limited partnership).
Section 11 amends § 17-905 of the LP Act to provide that a certificate correcting an inaccurate application for registration as a foreign limited partnership shall be executed by any person authorized to execute the certificate on behalf of the foreign limited partnership (which may or may not be a general partner of the foreign limited partnership).
Section 12 amends § 17-906 of the LP Act to provide that a certificate of cancellation of registration as a foreign limited partnership shall be executed by any person authorized to execute the certificate on behalf of the foreign limited partnership (which may or may not be a general partner of the foreign limited partnership).
Section 13 amends § 17-1109(b) of the LP Act to confirm that when the existence of a domestic limited partnership or registered series, or the registration of a foreign limited partnership, will cease by the filing of a certificate under the LP Act, the full amount of the annual tax for the calendar year in which such certificate becomes effective is due and payable prior to the filing of such certificate.
Section 14 provides that the amendments to the LP Act take effect on August 1, 2025. | AN ACT TO AMEND TITLE 6 OF THE DELAWARE CODE RELATING TO THE DELAWARE REVISED UNIFORM LIMITED PARTNERSHIP ACT. |
| SB 95 | Committee | Brown | This Act continues the practice of amending periodically the Delaware General Corporation Law (“DGCL”) to keep it current and maintain its national preeminence. The following is a section-by-section review of the proposed amendments to the DGCL.
Sections 1, 3 and 4 of this Act amend §§ 102(f), 109(b) and 115 of Title 8, respectively. Since 2015, the provisions of §§ 102(f), 109(b) and 115 have included provisions for the regulation of “internal corporate claims” as defined in § 115. In addition to permitting forum selection provisions that require internal corporate claims to be adjudicated in a court in this State, these sections prohibit certificate of incorporation and bylaw provisions that purport to:
a. impose “fee-shifting” against stockholders with respect to internal corporate claims; or
b. preclude a stockholder from asserting an internal corporate claim in a court in this State.
A certificate of incorporation may address and regulate not only internal corporate claims but additional claims that relate to a corporation’s “intra-corporate affairs” if the certificate provision at issue is consistent with public policy. Salzberg v. Sciabacucchi, 227 A.3d 102 (Del. 2020).
Sections 1, 3 and 4 of this Act amend §§ 102(f), 109(b) and 115 so that the same statutory safeguards that apply to certificate and bylaw provisions regulating internal corporate claims will also apply to certificate and bylaw provisions addressing the intra-corporate affairs claims permitted under the reasoning of the Salzberg decision. With respect to these claims:
a. Amended §§ 102(f) and 109(b) prohibit fee-shifting provisions: that is, certificate of incorporation and bylaw provisions that purport to impose liability on a stockholder for the attorneys’ fees or expenses of the corporation or any other party with respect to any claim that a stockholder has brought, in its capacity as a stockholder or in the right of the corporation, in an action, suit, or proceeding.
b. Amended § 115 specifies that a certificate of incorporation or bylaw provision addressing intra-corporate affairs claims must be consistent with applicable jurisdictional requirements and must allow stockholders to bring the claims in at least 1 court in this State that has jurisdiction over such claims. Amended § 115 permits the designation of any judicial or arbitral forum so long as the designation does not prevent a stockholder from bringing claims in a court with jurisdiction in this State. The United States District Court for the District of Delaware is a court “in” this State for purposes of amended § 115.
Rather than specifically defining the types of non-internal claims that constitute intra-corporate affairs claims, amended § 115 authorizes forum selection provisions that relate to “the business of the corporation, the conduct of its affairs, or the rights or powers of the corporation or its stockholders, directors or officers.” This language is taken from §§ 102(b)(1) and 109(b). The Salzberg decision relied on similar language from § 102(b)(1) to uphold the validity of forum selection provisions related to certain intra-corporate affairs claims. It is anticipated that the courts will interpret and apply amended § 115 in the same manner that the Delaware Supreme Court interpreted and applied the language of § 102(b)(1) in the Salzberg decision. Amended § 115 is not intended to promote the development of new forum selection provisions beyond what is permitted under the reasoning of the Salzberg decision.
Under amended § 115, a forum selection provision addressing non-internal corporate claims cannot prohibit claims from being brought in a court in this State “that has jurisdiction over such claims.” Amended § 115 therefore reaches a result different from the United States Court of Appeals for the Ninth Circuit in Lee v. Fisher, 70 F.4th 1129 (9th Cir. 2023), and the United States District Court for the Western District of Texas in Sobel v. Thompson, 2023 WL 4356066 (W.D. Tex. July 5, 2023). In these decisions, the courts upheld the application of a forum selection bylaw that required all derivative claims to be asserted exclusively in the Court of Chancery, including derivative claims under the Securities Exchange Act of 1934. However, the Court of Chancery does not have jurisdiction over Securities Exchange Act claims. Under amended § 115, a forum selection provision that purports to address derivative claims under federal law must be permissible under § 115, consistent with the reasoning in the Salzberg decision, and must also permit the claim to be brought in the United States District Court for the District of Delaware.
Consistent with the provisions pre-dating these amendments:
a. Amended §§ 102(f), 109(b) and 115 are not intended to prevent the application of a provision on fee-shifting, or the selection of a forum other than a court in this State, if the provision is included in a stockholder agreement or other writing signed by the stockholder against whom the provision is to be enforced;
b. Amended § 115 is not intended to foreclose evaluation of whether the specific terms and manner of adoption of a particular provision authorized by amended § 115 comport with any relevant fiduciary obligation or operate reasonably in the circumstances; and
c. Amended § 115 is not intended to limit or expand the jurisdiction of the Court of Chancery or the Superior Court.
Section 2 of this Act amends § 103(f), which provides for the correction of instruments filed with the Secretary of State. The amendment confirms that, in addition to correcting a previously filed instrument, a certificate of correction may nullify a previously filed instrument by specifying the inaccuracy or defect with respect to such previously filed instrument and providing that the previously filed instrument is nullified. A statement that the previously filed instrument is nullified or void, or a statement with words of similar meaning, will constitute sufficient provision for the nullification.
Section 5 of this Act amends § 131, which requires a corporation to have a registered office in this State. In addition to enacting wording changes to § 131(a), the amendments to § 131(b) provide that all references in Title 8 to a corporation’s “registered office” in this State shall be deemed to mean and refer to the address of the registered agent located in this State that has been appointed to accept service of process and otherwise perform the duties of a registered agent. The amendments also delete the provisions in § 131(b) that, in certain instances, deemed a corporation’s registered office to be the corporation’s principal office or principal place of business in this State for purposes of Title 8 and the certificate of incorporation. As amended, Title 8 does not include provisions that automatically treat a corporation’s registered office as a principal office or principal place of business of the corporation.
Section 6 of this Act amends § 132(b), which addresses certain duties of a registered agent of a corporation. Amended § 132(b) specifies that a registered agent may not perform its duties or functions solely through the use of either or both of a virtual office or the retention by the agent of a mail forwarding service. Amended § 132(b) defines “virtual office” as the performance of duties or functions solely through the internet or solely through other means of remote communication.
Section 7 of this Act amends § 155 to eliminate the ability of a corporation to issue scrip or warrants in bearer form in lieu of issuing fractional shares of stock. Amended § 155 continues to permit corporations to issue scrip or warrants in registered form. The amendment is intended to bring § 155 in line with the Corporate Transparency Act, 31 U.S.C. § 5336(f), which prohibits corporations from issuing certificates in bearer form for either a whole or fractional interest in an entity.
Section 8 of this Act amends § 252(c), which lists the information that a corporation must include in a certificate filed with the Secretary of State to merge or consolidate domestic corporations with foreign corporations. The amendments delete from § 252(c) a requirement that a certificate of merger or consolidation list the authorized capital stock of each foreign corporation that has ceased to exist as a result of the merger or consolidation.
Section 9 of this Act amends § 311, which addresses the procedures for revoking the dissolution of a corporation and restoring an expired corporation. Amended § 311(a)(4) requires that a certificate of revocation of dissolution or certificate of restoration state the date of filing of the corporation’s original certificate of incorporation with the Secretary of State and state the date of filing of the corporation’s certificate of dissolution with the Secretary of State.
Section 10 of this Act amends § 312, which enables a corporation to revive its certificate of incorporation after the certificate has become forfeited or void. Amended § 312(g) addresses circumstances where a corporation has been revived under § 312 and later files a certificate of validation under § 204 to ratify one or more defective corporate acts. If the certificate of validation relates to a time during which the corporation was forfeited or void, amended § 312(g) requires the corporation to file the annual franchise tax reports, and pay the annual franchise taxes, that would have been required to be filed, and paid, during the period that the certificate of incorporation had been forfeited or void. The franchise taxes owed include the interest accrued on the taxes, and the filings and payments must be made at the time the certificate of validation is filed.
Section 11 of this Act amends § 377. Among other things, § 377 addresses the procedures that a foreign corporation must follow to reinstate its qualification to do business in this State after the qualification has been forfeited under § 132 or § 136. In connection with such a reinstatement, amended § 377(e) requires a foreign corporation to file all annual reports and pay all required fees that would have been required to be filed or paid during the time the foreign corporation’s qualification to do business in this State had been forfeited.
Section 12 of this Act amends § 502, which requires a corporation to file an annual report with the Secretary of State. Amended § 502(a) requires that the report disclose the nature of the business of the corporation and confirms that no office of any registered agent may be disclosed as the address of the principal place of business of the corporation, except where the corporation maintains its principal place of business in this State and serves as its own registered agent. The paragraphs of amended § 502(a) have also been re-numbered.
Section 13 of this Act amends § 503, which provides the rates and means of computing franchise taxes. Amended § 503(e) provides that the filing of a certificate of validation to ratify one or more defective corporate acts pursuant to § 204 will not reduce the interest owed on the franchise taxes owed for prior periods and specifies that a corporation is not entitled to a franchise tax refund for any period prior to the filing of the certificate of validation. The amendments also repeal § 503(h), which specified an alternative franchise tax rate for regulated investment companies.
Section 14 of this Act amends § 505 by clarifying that a corporation is not entitled to a refund of taxes, penalties or interest in connection with filing a certificate of correction under § 103(f) or a certificate of validation under § 204.
Section 15 of this Act provides that Sections 1 through 12 and Section 14 of this Act take effect on August 1, 2025.
Section 16 of this Act provides that § 503(h), as contained in Section 13 of this Act, takes effect for tax years beginning on or after January 1, 2026. Section 16 of this Act also provides that § 503(e), as contained in Section 13 of this Act, takes effect on August 1, 2025.
This Act requires a greater than majority vote for passage because § 1 of Article IX of the Delaware Constitution requires the affirmative vote of two-thirds of the members elected to each house of the General Assembly to amend the general corporation law.
| AN ACT TO AMEND TITLE 8 OF THE DELAWARE CODE RELATING TO THE GENERAL CORPORATION LAW. |
