Court Of Chancery Limits Remedy For Charter Breach
Fletcher International Inc. v. ION Geophysical Corp., C.A. 5109-VCP (March 24, 2010)
When a provision in a certificate of incorporation is violated, the question that often arises is what is the remedy. Often the Court will enjoin the violation, but not always. Here the preferred stock had approval rights for certain corporate transactions. Those rights were violated. Finding that an injunction would cause more harm than was merited, the Court denied the injunction and remitted a damages remedy to the plaintiff.
