{"id":4418,"date":"2025-12-18T13:10:44","date_gmt":"2025-12-18T18:10:44","guid":{"rendered":"https:\/\/law.temple.edu\/10q\/?p=4418"},"modified":"2025-12-18T13:10:44","modified_gmt":"2025-12-18T18:10:44","slug":"corporate-due-process","status":"publish","type":"post","link":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/","title":{"rendered":"Corporate Due Process"},"content":{"rendered":"

December 18, 2025<\/p>\n

What if corporate power can be bargained for\u2014and any fiduciary duties to constrain that power, left behind? Delaware\u2019s latest amendments open the door to just that, reshaping the rules around control, accountability, and the role of contract in corporate governance. In a new draft article, Corporate Due Process<\/em><\/a>, we explore these questions, and offer thoughts on how courts and practitioners can begin to answer them.<\/p>\n

Following uncharacteristically contentious and public debates, Delaware adopted in 2024 and early 2025 what are now known as the \u201cDelaware Control Amendments\u201d to its highly influential General Corporate Law (\u201cDGCL\u201d). These amendments were spurred by Elon Musk\u2019s notorious and aggressive efforts to punish Delaware courts for refusing to bless his dominance of Tesla\u2019s board of directors in Tornetta v. Musk<\/em> and served to reduce the conditions under which a contract controller would be deemed a corporate fiduciary.<\/p>\n

Specifically, Delaware amended section 122(18) of the DGCL to authorize directors to fully contract away their control via what we call \u201ccorporate control contracts\u201d (CCKs) and section 144 to specify that the right to appoint a majority of directors is the only contractual power that will be deemed \u201ccontrol\u201d giving rise to fiduciary duties. Other states (notably Texas and Nevada) have recently made similar moves.<\/p>\n

The law of fiduciaries has long checked discretionary control of other people\u2019s property, notably in corporate governance, where directors owe a corporation duties of care and loyalty. Yet, contract has also had the capacity to modify these duties to an important\u2014but uncertain\u2014extent because neither body of law contains a meta-rule specifying which would \u201ctrump\u201d in the event of conflict. Until recently, uncertainty was rarely problematic, because directors did not, and could not, fully contract away their control of the corporation or their concomitant fiduciary duties.<\/p>\n

Over the past thirty years a shift has occurred as activist shareholders\u2014in particular, private equity investors\u2014increasingly use contract to control corporations while minimizing fiduciary risk, through the use of CCKs\u2014that is, to contractualize corporate governance. Contractual corporate governance is controversial because it can vest power in a single controller, which can impair basic procedural protections of corporate law, such as shareholder voting and directors\u2019 fiduciary duties.<\/p>\n

The heat of the debates over the Delaware Control Amendments, and the speed with which they were enacted\u2014less than a year\u2014appear to have left gaps in the definition of \u201ccontrol\u201d as it can arise under CCKs. The Delaware Control Amendments seek to make contract a more inviting instrument of corporate governance, yet paradoxically may actually make it less predictable.<\/p>\n

To reduce the litigable zone of uncertainty\u2014while also preserving key procedural protections that legitimize the use of the corporate form\u2014we argue that courts, practitioners and commentators should look to \u201cdue process\u201d values of notice, participation and independence to sort more from less serious problems likely to arise in the use of CCKs. \u201cDue process\u201d values have long served as a baseline check on power. Because the Delaware Control Amendments decouple power from duty, these values will be increasingly important in resolving disputes over the effect of the Delaware Control Amendments.<\/p>\n

A draft of the full article can be found here<\/a>.<\/p>\n

Jonathan C. Lipson is Harold E. Kohn Chair and Professor of Law, Temple University Beasley School of Law and Assistant Reporter for the Model Business Corporation Act, <\/em>the corporate law of over 30 jurisdictions outside of Delaware<\/em>. Eli Alexander Evans is a JD candidate in the Temple Law Class of 2026 and incoming law clerk at the Delaware Court of Chancery. Ruth Abrams is a JD candidate in the Temple Law Class of 2027.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

December 18, 2025 What if corporate power can be bargained for\u2014and any fiduciary duties to constrain that power, left behind? Delaware\u2019s latest amendments open the door to just that, reshaping the rules around control, accountability, and the role of contract in corporate governance. In a new draft article, Corporate Due Process, we explore these questions,<\/p>\n","protected":false},"author":59,"featured_media":4423,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"coauthors":[289,2947,2948],"class_list":["post-4418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","masonry-post","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"yoast_head":"\nCorporate Due Process - The Temple 10-Q<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Corporate Due Process - The Temple 10-Q\" \/>\n<meta property=\"og:description\" content=\"December 18, 2025 What if corporate power can be bargained for\u2014and any fiduciary duties to constrain that power, left behind? Delaware\u2019s latest amendments open the door to just that, reshaping the rules around control, accountability, and the role of contract in corporate governance. In a new draft article, Corporate Due Process, we explore these questions,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\" \/>\n<meta property=\"og:site_name\" content=\"The Temple 10-Q\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-18T18:10:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonathan C. Lipson (Temple Harold E. Kohn Chair Professor of Law), Eli Alexander Evans (LAW \u201926), Ruth Abrams (LAW \u201927)\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonathan C. Lipson (Temple Harold E. Kohn Chair Professor of Law), Eli Alexander Evans (LAW \u201926), Ruth Abrams (LAW \u201927)\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\"},\"author\":{\"name\":\"Tameka A. Barnes\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4\"},\"headline\":\"Corporate Due Process\",\"datePublished\":\"2025-12-18T18:10:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\"},\"wordCount\":603,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\",\"url\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\",\"name\":\"Corporate Due Process - The Temple 10-Q\",\"isPartOf\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg\",\"datePublished\":\"2025-12-18T18:10:44+00:00\",\"author\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4\"},\"breadcrumb\":{\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage\",\"url\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg\",\"contentUrl\":\"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg\",\"width\":1280,\"height\":853},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/law.temple.edu\/10q\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Corporate Due Process\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#website\",\"url\":\"https:\/\/law.temple.edu\/10q\/\",\"name\":\"The Temple 10-Q\",\"description\":\"Temple's Business Law Magazine\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/law.temple.edu\/10q\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4\",\"name\":\"Tameka A. Barnes\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g525014dce3c80ead75f331a22e3ab869\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g\",\"caption\":\"Tameka A. Barnes\"},\"url\":\"https:\/\/law.temple.edu\/10q\/author\/tur80994\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Corporate Due Process - The Temple 10-Q","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/","og_locale":"en_US","og_type":"article","og_title":"Corporate Due Process - The Temple 10-Q","og_description":"December 18, 2025 What if corporate power can be bargained for\u2014and any fiduciary duties to constrain that power, left behind? Delaware\u2019s latest amendments open the door to just that, reshaping the rules around control, accountability, and the role of contract in corporate governance. In a new draft article, Corporate Due Process, we explore these questions,","og_url":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/","og_site_name":"The Temple 10-Q","article_published_time":"2025-12-18T18:10:44+00:00","og_image":[{"width":1280,"height":853,"url":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","type":"image\/jpeg"}],"author":"Jonathan C. Lipson (Temple Harold E. Kohn Chair Professor of Law), Eli Alexander Evans (LAW \u201926), Ruth Abrams (LAW \u201927)","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jonathan C. Lipson (Temple Harold E. Kohn Chair Professor of Law), Eli Alexander Evans (LAW \u201926), Ruth Abrams (LAW \u201927)","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#article","isPartOf":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/"},"author":{"name":"Tameka A. Barnes","@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4"},"headline":"Corporate Due Process","datePublished":"2025-12-18T18:10:44+00:00","mainEntityOfPage":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/"},"wordCount":603,"commentCount":0,"image":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage"},"thumbnailUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/law.temple.edu\/10q\/corporate-due-process\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/","url":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/","name":"Corporate Due Process - The Temple 10-Q","isPartOf":{"@id":"https:\/\/law.temple.edu\/10q\/#website"},"primaryImageOfPage":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage"},"image":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage"},"thumbnailUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","datePublished":"2025-12-18T18:10:44+00:00","author":{"@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4"},"breadcrumb":{"@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/law.temple.edu\/10q\/corporate-due-process\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#primaryimage","url":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","contentUrl":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","width":1280,"height":853},{"@type":"BreadcrumbList","@id":"https:\/\/law.temple.edu\/10q\/corporate-due-process\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/law.temple.edu\/10q\/"},{"@type":"ListItem","position":2,"name":"Corporate Due Process"}]},{"@type":"WebSite","@id":"https:\/\/law.temple.edu\/10q\/#website","url":"https:\/\/law.temple.edu\/10q\/","name":"The Temple 10-Q","description":"Temple's Business Law Magazine","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/law.temple.edu\/10q\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/law.temple.edu\/10q\/#\/schema\/person\/5ae2f2fed1b6b7532f3c2f17ba95d5c4","name":"Tameka A. Barnes","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g525014dce3c80ead75f331a22e3ab869","url":"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/b79c941bd5f8089182ae00944908153958ca9043bbbee7ec112ef42e8b5a95e9?s=96&d=mm&r=g","caption":"Tameka A. Barnes"},"url":"https:\/\/law.temple.edu\/10q\/author\/tur80994\/"}]}},"jetpack_featured_media_url":"https:\/\/law.temple.edu\/10q\/wp-content\/uploads\/sites\/12\/2025\/12\/Corporate-Due-Process_Pic.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts\/4418","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/comments?post=4418"}],"version-history":[{"count":1,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts\/4418\/revisions"}],"predecessor-version":[{"id":4422,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/posts\/4418\/revisions\/4422"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/media\/4423"}],"wp:attachment":[{"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/media?parent=4418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/categories?post=4418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/tags?post=4418"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/law.temple.edu\/10q\/wp-json\/wp\/v2\/coauthors?post=4418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}