DOVER, Del. AP – Asked by federal regulators for help in a pivotal shareholder rights case, the Delaware Supreme Court heard arguments Wednesday on whether shareholders can force corporations to reimburse expenses related to the election of dissident directors.
New York-based software company CA Inc. contends that a bylaw proposed by the American Federation of State, County, and Municipal Employees is invalid under Delaware law. The bylaw would require CA under certain circumstances to reimburse reasonable expenses incurred by dissident nominees in a short-slate proxy contest, as long as at least one was elected.
