By Citizens for a Pro-Business Delaware, Special for USDR
Citizens for a Pro-Business Delaware, a group made up of more than 1,200 members including employees of the global translation services company TransPerfect, as well as concerned Delaware residents, top business executive and others, today announced the introduction of a resolution in the Delaware State Legislature.
The resolution – SCR 91 – recognizes that Delaware and its Courts are respected nationally for corporate law and its common ground approach to these issues, which is why so many companies incorporate in Delaware. The resolution also points out that in order to maintain that balance, the State needs to ensure that meritless litigation and unnecessary costs are not imposed on businesses.
“The group is thrilled to have a resolution introduced to the Legislature and our hope is to continue to push for legislative reform and ensure that Delaware Courts remain fair and balanced for profitable companies, and that jobs are not lost because of their forced dissolution,” said Miranda Wessinger, President of the Citizens for Pro-Business Delaware. “We hope that this resolution is just the first step in working with our Delaware State Legislature to resolve the concerning issue for businesses here.”
The resolution is being introduced by Senator Colin Bonini. “The resolution I am introducing today is extremely important for the business community and the entire state of Delaware. We must protect our profitable companies and ensure that the Chancery Court remains fair and balanced. This resolution is an important step in that effort, and encourages the Bar Association to look into other possible remedies for this situation,” said Senator Bonini. “I am proud to be working with Citizens for a Pro-Business Delaware to keep our businesses and important jobs here in Delaware.”
The group has also received support from Representative Michael Ramone. “As a small business owner and member of the House Economic Development Committee, I understand the significance of this case and how important it is for Delawarebusiness,” said Representative Ramone. “We as State Legislators need to recognize the impact this will have on both the company and employees, as well as our reputation as the best place to form a business corporation.”
The group is continuing its grassroots efforts to get more citizens and legislators to join the group. In the past several weeks, leaders of Citizens for a Pro-Business Delaware have had meetings with high-ranking state legislators from both sides of the aisle, and have been met with a positive response and an understanding of the importance of addressing the issue.
The resolution would have an impact on the TransPerfect case, in which Chancellor Bouchard claimed the owners’ relationship has caused harm to the company, even though TransPerfect has recorded more than $500 million in sales and has 4,000 full-time employees and operates from over 100 offices worldwide. Sales are up by more than 11% from last year and TransPerfect continues to secure large contracts with major corporations. All of this demonstrates that there was no irreparable harm occurring, which would warrant the dissolution and sale of the company. The less intrusive remedy that is available is to appoint a tie-breaking board member to prevent deadlock.
For over a year, TransPerfect employees have been in limbo while this case is litigated. The employees are fighting to keep this company together, since a significant number of jobs could be lost if the company is sold to another firm.
The resolution states that the General Assembly calls upon the Delaware State Bar Association, its Corporation Law Section and Council to examine business entity laws with an eye towards the rules governing the dissolution of a company and clarification of an appropriate remedy for resolving any dispute of a profitable Delaware company. The resolution ends with the consideration of legislation.
Contact: Patrick Muncie (Tusk Strategies); 212-966-5161
SOURCE Citizens for a Pro-Business Delaware