Coster v. UIP: Delaware Court Upholds Stock Issuance Decision

Coster v. UIP involved a 50/50 shareholder deadlock and a board decision to issue stock to a key employee, reducing one shareholder's ownership interest. The Delaware courts upheld the issuance after applying enhanced review, finding a compelling justification because the deadlock threatened the company's operations and the issuance was part of a long-planned succession strategy.

Original article:https://www.whitcomblawpc.com/business-law-blog/coster-v.-uip-delaware-court-upholds-stock-issuance-decision