Law, Economics, and Judicial Systems
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Abstract
Abstract
This Casebrief examines the Delaware Supreme Court’s decision in Shawe v. Elting and argues that the court properly upheld the sale of a profitable corporation under Section 226 of the Delaware General Corporation Law. The court concluded that severe stockholder and director deadlock justified the appointment of a custodian and the sale of the company. The Casebrief contends that the decision reaffirms the broad equitable powers of the Delaware Court of Chancery and serves as a warning that prolonged deadlock in closely held corporations may result in judicially ordered dissolution or sale.[This abstract was written by Microsoft Copilot, a generative artificial intelligence.]
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@article{DeBona2026Climb,
title = {If You Climb Into Bed With Your Business Partner, the Court Might Climb in, Too: The Delaware Supreme Court's Cautionary Tale of Acrimonious Engagement and Corporate Deadlock in Shawe v. Elting},
author = {Lauren G. DeBona},
year = {2026},
doi = {10.31219/osf.io/zsv2c_v1},
url = {https://doi.org/10.31219/osf.io/zsv2c_v1}
}FAQ
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