U.S. Chamber Welcomes Delaware Supreme Court Finding in Shareholder Case

WASHINGTON, D.C.-U.S. Chamber of Commerce Senior Vice President and President and CEO of the Chamber's Center for Capital Markets Competitiveness David Hirschmann made the following statement in response to the Delaware Supreme Court striking down a proposed shareholder bylaw that would require companies to pay the expenses of independent candidates who successfully win board seats.

"We welcome the Delaware Supreme Court's finding that shareholders should not have to pay for the campaigns of special-interest activist investors. Unions and other special interests have tried to hijack the proxy process to advance their agendas at the expense of average shareholders. The court reaffirmed that under Delaware law company directors have a fiduciary obligation to ensure that their actions benefit all shareholders."

The Chamber will continue to vigorously oppose any plan that allows groups to use the proxy process to promote narrow interests that do not serve the long-term goals of a company or investors. Politicizing the boardroom would hurt millions of individuals who rely on these investments for retirement."

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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