Document: Reddy v. MBKS Company Limited, No. 300, 2007, Jacobs, J. (Del. March 3, 2008)
Reddy, the defendant below, appealed an order from the Court of Chancery granting summary judgment in favor of MBKS. The issue was whether the Court of Chancery correctly determined that actions taken by Reddy constituted a cancellation of shares of the MKBS companies. The lower court held that they did and this court affirmed the summary judgment motion. Because the charters of the MKBS companies were not amended to authorize the alteration of their capital structure, Reddy’s actions were legally ineffective because he did not comply with 8 Del. C. § 242. This Court affirmed the lower courts holding.