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Barry M. Klayman and Mark E. Felger Barry M. Klayman and Mark E. Felger

What should be the standard of review when the Delaware Court of Chancery considers an appeal from a receiver’s disallowance of a claim pursuant to Section 296(b) of the Delaware General Corporation Law? In B.E. Capital Management Fund v. Fund.com, C.A. No. 12843-VCL (Del. Ch. Oct. 4, 2017), Vice Chancellor J. Travis Laster held that a receiver’s determination is subject to de novo review and the court has discretion to go beyond the record presented to the receiver by conducting an evidentiary hearing.

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