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Business Organizations Keyed to Sjostrom
CA, Inc. v. AFSCME Employees Pension Plan
Citation:
953 A.2d 227 (Del. 2008)Facts
AFSCME Employees Pension Plan was a shareholder of CA, Inc. AFSCME proposed and sought shareholder approval of the following amendment to CA’s bylaws: “The board of directors shall cause the corporation to reimburse a stockholder for reasonable expenses incurred in connection with nominating a candidate in a contested election of directors.” The purpose of the bylaw is to increase the frequency of contested board elections. AFSCME contends that the proposal, if adopted, would violate the Delaware law.
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