How Delaware law supports disciplined resource allocation when firms cannot execute
Delaware corporate law gives boards broad authority to decide how corporate assets should be used, but that authority carries a parallel obligation to oversee whether the enterprise is functioning well enough to use those assets productively. In Section 141(a) of the Delaware General Corporation Law, the statute states that the business and affairs of the corporation are managed by or under the direction of the board of directors, which makes resource allocation an ordinary part of fiduciary decision-making.
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