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Many of us are still trying to get comfortable with the idea of autonomous vehicles. Turns out, we may soon need to get comfortable with the idea of autonomous companies.

A first-of-its-kind draft bill has been proposed to the Delaware legislature that would allow the creation of an Artificial Intelligence Company (AIC), a form of legal personhood for an entity that operates through an AI agent with no human at the controls, and with the same kind of limited liability for the entity’s owners as for a more traditional company.  

As discussed below, the proposed new AIC corporate form raises some very interesting questions. It also arguably represents an entirely new challenge for the D&O insurance industry.

Continue Reading Brave New World: Delaware’s Proposed New “Artificial Intelligence Company”
Thomas Boley

In the following guest post, Thomas Boley, an associate at the Wiley Rein LLP law firm, takes a closer look at the Up-C corporate structure, and considers the claims that can arise due to the issues the corporate structure can present, as well as the insurance coverage issues that these claims may involve. Our thanks to Thomas for allowing us to publish his article as a guest post on this site. Here is Thomas’s article.

Continue Reading Guest Post: D&O Risks in Up‑C Dilution Claims

When insurer Lemonade recently completed its IPO, it did so as a “public benefit corporation” – that is, a corporation chartered to allow it to have a public benefit purpose, in addition to the traditional profit maximization model. Lemonade’s IPO has raised the question whether other companies will follow this model, including in particular whether other IPO companies will complete their listings as a public benefit corporations. The possibility that other companies may adopt the public benefit corporation model raises a number of questions, including in particular questions concerning the duties and potential liabilities of public benefit corporation directors, as discussed below.
Continue Reading Will More Companies Adopt the Benefit Corporation Model?