8min chapter

Bloomberg Law cover image

Democrats Put Focus on Project 2025

Bloomberg Law

CHAPTER

Complex Legal Case Involving Shareholder Agreement and Loan Dispute

The chapter delves into a legal case where a person attempted to borrow money using company stock as collateral, leading to contractual restrictions violations and a legal dispute despite collaboration with the company's CEO. Vice Chancellor Laster's decision, upheld by the Delaware Supreme Court, allowed shares to be seized due to terms violation, setting the stage for a significant ruling on shareholder agreements.

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