DEL LEG Domestic Statutory Trusts

On May 16, DEL LEG passed bill on creation and operation of trusts.

  • DEL LEG passed HB 338 to amend Statutory trust act, DEL LEG 12, in connection with the creation, regulation, operation, and dissolution of domestic statutory trusts.
  • Bill Provisions
  • Confirms that any series of a statutory trust is bound by the governing instrument.
  • This applies regardless of whether the series executed the governing instrument.
  • Amendment is not intended to imply that other references to statutory trust in the Statutory Trust Act do not include series thereof to the extent required by the context.
  • Governing instrument of a statutory trust may be amended as permitted by § 3825(f).
  • Adds a new § 3806(p) to the Statutory Trust Act to confirm that trustees may authorize beneficial owners to direct voting of securities held by the statutory trust.
  • Legislative History
  • On Mar. 7, 2024, bill was introduced in House; on Apr. 23, 2024, bill passed House.
  • On May 8, 2024, bill was introduced in Senate; on May 16, 2024, bill passed Senate.
  • Effectiveness
  • Bill takes effect on Aug. 1, 2024 if enacted.
  • May 2024 DEL LEG Governor Approval
  • On May 30, 2024, DEL LEG reported bill approval by governor, effective Aug. 1, 2024.
  • Bill HB 338 entered session law as Volume 84, Chapter 268, Advisory No. 36.

Regulators DEL LEG
Entity Types Corp; Fiduciary
Reference Vol. 84 Ch. 368 Adv. 36, 5/30/2024; Bill HB338, 5/16/2024; Citation: DEL LEG 12;
Functions Compliance; Legal; Operations
Countries United States of America
Products Corporate
Regions Am
Rule Type Final
Rule Date 5/16/2024
Effective Date 8/1/2024
Rule Id 212539
Linked to N/A
Reg. Last Update 5/30/2024
Report Section US Investment

Last substantive update on 06/05/2024