The founder of Gabb Wireless Inc. was re-instated to the company’s board of directors after a Delaware chancellor ruled the stockholder vote leading to his ouster was predicated on misleading material.
A confidential information statement shared with stockholders ahead of the vote left off material information, making the vote to remove Stephen Dalby invalid, Chancellor Nathan A. Cook said. The board voted just fractions of a percentage over 50% in favor of removing Dalby in January.
“Because stockholders were unaware that the removal effort was spearheaded by one faction of the board and management,” the vote is invalid and ...