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2nd Circ. Case Reinforces Need For Advance Notice Bylaws

By Michael Blanchard, Justin Chairman and Christopher Wasil ( August 7, 2024, 4:30 PM EDT) -- The U.S. Court of Appeals for the Second Circuit recently affirmed the U.S. District Court for the Southern District of New York's denial of a company's request to sterilize the voting securities of stockholders who allegedly violated the disclosure requirements of Section 13(d) of the Securities Exchange Act, as amended. In so holding, it highlighted the importance of advance notice bylaws in protecting against undisclosed coordination among activist shareholders....

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