Ken Moelis got his veto rights over board decisions at his investment bank restored Tuesday by Delaware’s highest court in a ruling that largely avoided remarking on corporate law amendments drafted to explicitly allow similar provisions.
The provisions challenged in the pact between Moelis & Co. and its billionaire founder “are not void, but voidable,” and the challenge came too long after the stockholder agreement was signed in 2014, Justice Gary F. Traynor wrote in an opinion for the court’s full five-member panel.
The Delaware Supreme Court does “not agree that, because the challenged provisions purportedly constitute an ‘ongoing statutory ...