Delaware Court Of Chancery Rules In Favor Of Texas Pacific Land Corporation On Litigation Related To Stockholders' Agreement
Portfolio Pulse from Benzinga Newsdesk
The Delaware Court of Chancery ruled in favor of Texas Pacific Land Corporation (TPL) in a litigation against Horizon Kinetics LLC and others regarding a stockholders' agreement. The court decided that the Investor Group should have voted with the TPL Board's recommendation on a proposal to increase the number of authorized shares of common stock. This ruling means the proposal is deemed approved, allowing TPL to proceed with a stock split in the form of a stock dividend once an amended charter is filed.
December 04, 2023 | 1:21 pm
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Texas Pacific Land Corporation won a court case allowing it to increase authorized shares and proceed with a stock split as a stock dividend. This could positively impact investor sentiment and potentially increase the stock's liquidity.
Winning the litigation removes a legal hurdle for TPL, enabling them to increase the number of authorized shares and execute a stock split. This is likely to be viewed positively by investors as it indicates a resolution to corporate governance issues and could lead to increased liquidity and potentially a broader shareholder base. The stock split may also make the stock more accessible to smaller investors.
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