The Delaware Supreme Court, affirming a Chancery Court decision, has ruled that corporations have the right to determine the amount of funds they will make available for a stock redemption if the company is in danger of becoming insolvent and that "funds legally available" does mean the same as a "surplus."
Justice Henry duPont Ridgely issued the opinion on behalf of the en banc court in the case ofSV Investment Partners v. ThoughtWorks Inc. The case, which has been in and out of the Chancery Court since 2006, originated as a dispute between ThoughtWorks, a Chicago software company incorporated in Delaware, and SV Investment Partners, a New York equity firm.
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