Bass, Berry & Sims attorney William Lay authored an article for Transactions: The Tennessee Journal of Business Law outlining statutory and common law restrictions imposed on preferred stock redemption rights and recent decisions by the Delaware Chancery Court pertaining to restrictions concerning redemption provisions. The article covers the following three topics:
- Part 1 introduces and describes redemption restrictions imposed by DGCL § 160 and Delaware common law.
- Part 2 analyzes the methodology used by the Delaware Chancery Court in interpreting and construing redemption restrictions and provisions citing three recent cases.
- Part 3 offers recommendation that issuers implement to avoid problems associated with redemption restrictions.
The full article, "Preferred Stock Redemptions: Limiting Liability Under DGCL § 160," was published in Transactions: The Tennessee Journal of Business Law in the Spring 2017 issue and is available online. Transactions: The Tennessee Journal of Business Law is a publication of the University of Tennessee College of Law.