"One court" corporate bylaws - USA x Brazil

This article from WST caught my attention because, in Brazil, the determination of a single court/venue that shareholders must choose when suing a company (public or private) is virtually the rule.

 I have never drafted bylaws or articles of association without this clause, for example.

‘One Court’ Corporate Bylaws Working

• LIZ HOFFMAN
 
• CONNECT

Hundreds of public companies have adopted bylaws over the past two years requiring shareholders suing them to do so in a single court — an effort, advisers say, to impose some order on what had become a litigation feeding frenzy.

It seems to be working.

A new study finds that while shareholders still sue over virtually every corporate transaction — 96% for mergers over $1 billion in 2014, unchanged from prior years —- they’re doing it in fewer courts. Just 40% of deals faced suits in more than one jurisdiction, down from 62% in 2013, according to Cornerstone Research. The number of individual complaints filed per deal also fell to 4.5, its lowest level since 2008.

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