866:, Delaware adopted on March 10, 1899, a general incorporation act aimed at attracting more businesses. The group that pushed for this legislation intended to establish a corporation that would sell services to other businesses incorporating in Delaware. Before the rise of general incorporation acts, forming a corporation required a special act of the state legislature. General incorporation allowed anyone to form a corporation by simply raising money and filing articles of incorporation with the state's Secretary of State.
1212:
1198:
51:
903:
office in
Delaware. National banks are, however, corporations formed under federal law, not Delaware law. A corporation formed under Delaware state law benefits from the relaxed interest rules to the extent it conducts business in Delaware, but is subject to restrictions of other states' laws if it conducts business in other states.
887:. Because it is a court of equity, there are no juries; its cases are heard by judges, called chancellors. Since 2018, the court has consisted of one chancellor and six vice-chancellors. The court is a trial court, with one chancellor hearing each case. Litigants may appeal final decisions of the Court of Chancery to the
910:", corporations which act in more than one state are subject only to the laws of their state of incorporation with regard to the regulation of the internal affairs of the corporation. As a result, Delaware corporations are subject almost exclusively to Delaware law, even when they do business in other states.
926:
on corporations not operating within the state, so taking advantage of
Delaware's other benefits does not result in taxation. At the same time, Delaware has a particularly aggressive tax on banks that locate in the state. However, in general, the state is viewed as a positive location for corporate
902:
laws limiting the amount of interest a lender can charge. Federal law allows a national bank to "import" these laws from the state in which its principal office is located. Delaware (among others) has relatively relaxed interest laws, so several national banks have decided to locate their principal
942:
on the corporations incorporated in it. Franchise taxes in
Delaware are higher than in most other states which typically get revenue from corporate income taxes on the portion of the corporation's business done in that state. Delaware's franchise taxes supply about one-fifth of its state revenue.
913:
While most states require a for-profit corporation to have at least one director and two officers, Delaware laws do not have this restriction. All offices may be held by a single person who also can be the sole shareholder. The person, who does not need to be a U.S. citizen or resident, may also
874:
Because of the extensive experience of the
Delaware courts, Delaware has a more well-developed body of case law than other states, which serves to give corporations and their counsel greater guidance on matters of corporate governance and transaction liability issues. Disputes over the internal
927:
tax purposes because favorable laws of incorporation allow companies to minimize corporate expenditures (achieved through legal standardization of corporate legal processes), creating a nucleus in
Delaware with operating companies often in other states.
935:, such as uncashed checks and unredeemed gift certificates, if the corporation does not have information about the location of the owner of the property. Abandoned property provides Delaware with about half a billion dollars annually.
956:, Delaware's Secretary of State, insists that the state has struck the right balance between curbing criminality and "paying deference to the millions of legitimate businesspeople who benefit" from hassle-free incorporation.
930:
In addition, Delaware has used its position as the state of incorporation to generate revenue from its abandoned and unclaimed property laws. Under U.S. Supreme Court precedent, the state of incorporation gets to keep any
968:
signed amendments to the
Delaware General Corporation Law. The new legislation took effect on August 1, 2013, except for the ratification of the defective corporate acts amendment which took effect in 2014.
832:
The statute has been credited with reducing the tax burdens on
Delaware residents as revenues from the statute provide two-fifths of the state's budget, but has been controversial for facilitating
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published an article on tax-friendly jurisdictions, commenting that
Delaware stood for "Dollars and Euros Laundered And Washed At Reasonable Expense".
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by major corporations, as well as providing safe haven to money launderers, kleptocratic foreign rulers, and human traffickers.
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What's the Matter with
Delaware?: How the First State Has Favored the Rich, Powerful, and Criminal—and How It Costs Us All
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1732:"Delaware Supreme Court Validates Federal Forum Provisions – Richards, Layton & Finger – Delaware Law Firm"
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Delaware acquired its status as a corporate haven in the early 20th century. Following the example of
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because of its business-friendly corporate laws compared to most other U.S. states. 66% of the
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In 2020, the
Delaware Supreme Court upheld a provision allowing companies to require in their
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operate anonymously with only the listing agent through whom the company is registered named.
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Delaware has also attracted major credit card banks because of its relaxed rules regarding
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1593:"State of Delaware – Delaware Corporate Law – Delaware Corporation And Entity Laws"
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Ryan, Patrick S. (Winter 2004–2005). "Will There Ever Be a Delaware of Europe?".
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763:. The statute was adopted in 1899. Since the 1919 anti-corporation reforms in
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1560:"DEL CODE § 141 : Delaware Code – Section 141: BOARD OF DIRECTORS"
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1710:"Significant Amendments to Delaware General Corporation Law Enacted"
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1641:"State General Fund Revenues by Category (F.Y. 2002 – F.Y. 2005)"
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1238:, Wilmington, Delaware, home to over 6,500 Delaware corporations
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309:
Charitable incorporated organisation (England and Wales)
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1579:"Why are there so many anonymous corporations in Delaware?"
1485:
Us Company Laws and Regulations Handbook Volume 2 Delaware
875:
affairs of Delaware corporations are usually filed in the
771:, Delaware has become the most prevalent jurisdiction in
1813:
1798:
Delaware Department of State, Division of Corporations
1693:"Onshore financial centres: Not a palm tree in sight"
1670:"Delaware Senate approves abandoned property bill"
747:(Title 8, Chapter 1 of the Delaware Code), is the
1650:. Delaware Department of Finance. Archived from
1391:. Mineola: The Foundation Press, Inc. p. 9.
745:General Corporation Law of the State of Delaware
1348:"How Delaware Thrives as a Corporate Tax Haven"
317:Scottish charitable incorporated organisation
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8:
1800:– official website, corporation name search.
1511:"Delaware, the Tiny Capital of Big Business"
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27:Statute governing corporate law in Delaware
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1008:
1000:
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1466:Office of the Comptroller of the Currency
1236:Corporation Trust Center (CT Corporation)
817:purposes) in the state. Over half of all
779:corporate capital of the United States.
1714:Holland & Knight Securities Bulletin
1635:
1633:
1437:"Overview of the Delaware Court System"
1280:
1145:In re Walt Disney Derivative Litigation
454:
379:
298:
236:
41:
1699:(2013-02-16). Retrieved on 2013-09-05.
418:Limited liability limited partnership
333:Industrial and provident society
1814:The Delaware Journal of Corporate Law
1402:A History of Delaware Corporation Law
1157:In re Citigroup Derivative Litigation
988:DGCL 203 is particularly known as an
985:claims to be filed in federal court.
515:Gesellschaft mit beschränkter Haftung
7:
1366:"About the Division of Corporations"
1315:
1313:
1311:
1309:
1099:Broz v. Cellular Information Systems
964:On June 30, 2013, Delaware Governor
803:world's largest companies by revenue
1757:"A Timely Look at DGCL Section 203"
1389:Cases and Materials on Corporations
1368:. Delaware Division of Corporations
1804:Delaware's General Corporation Law
1289:"Delaware General Corporation Law"
751:of the Delaware Code that governs
25:
1809:Delaware Division of Corporations
1406:Delaware Journal of Corporate Law
1253:Delaware Journal of Corporate Law
1716:. August 5, 2013. Archived from
1612:Columbia Journal of European Law
1210:
1196:
1134:Delaware General Corporation Law
1039:AP Smith Manufacturing v. Barlow
933:abandoned and unclaimed property
829:) are incorporated in Delaware.
737:Delaware General Corporation Law
560:Société à responsabilité limitée
49:
1488:. Int'l Business Publications.
1326:. Princeton University Press.
1264:Flag of convenience (business)
775:and has been described as the
1:
1648:Delaware 2005 Fiscal Notebook
1509:Webber, Annie (21 Jul 2015).
979:certificates of incorporation
1668:Vuocolo, Alex (2017-01-20).
1577:Watson, Libby (6 Apr 2016).
1513:. Legal Hero. Archived from
1111:The Charitable Corp v Sutton
1030:Sources on directors' duties
442:Massachusetts business trust
1839:United States corporate law
1458:Interpretations and Actions
1231:Corporation Service Company
821:corporations listed in the
773:United States corporate law
629:Piercing the corporate veil
325:Community interest company
300:UK / Ireland / Commonwealth
288:Economic interest grouping
1855:
1755:Nugent, Eileen T. (2010).
1451:"Interpretive Letter #822"
1269:United Kingdom company law
877:Delaware Court of Chancery
847:
809:(and therefore have their
767:under the governorship of
398:Limited liability company
1387:Cary, William L. (1969).
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908:internal affairs doctrine
827:Intercontinental Exchange
782:Delaware is considered a
609:Internal affairs doctrine
604:and estoppel corporations
1829:Types of business entity
1439:. Delaware State Courts.
918:Tax benefits and burdens
898:. Many U.S. states have
33:This article is part of
1674:Delaware Business Times
823:New York Stock Exchange
739:(sometimes abbreviated
279:Societas unius personae
141:General corporate forms
1581:. Sunlight Foundation.
1320:Weitzman, Hal (2024).
1090:, 5 A2d 503 (Del 1939)
1078:, 164 NE 545 (NY 1928)
1054:, 237 NE 2d 776 (1968)
983:Securities Act of 1933
889:Delaware Supreme Court
879:, which is a separate
850:Regulatory competition
825:(including its owner,
591:Business judgment rule
1419:"A new judicial boss"
1042:39 ALR 2d 1179 (1953)
535:Naamloze vennootschap
525:Kabushiki gaisha
342:Limited company
1482:Usa Ibp Usa (2009).
1293:Delaware Code Online
1148:, 825 A2d 275 (2003)
1102:, 637 A2d 148 (1996)
922:Delaware charges no
659:Beneficial ownership
596:Corporate governance
432:Delaware corporation
259:Societas cooperativa
18:Delaware Corporation
1761:The Business Lawyer
1425:. 23 November 2013.
1404:, S. Samuel Arsht,
1123:Smith v. Van Gorkom
1051:Shlensky v. Wrigley
938:Delaware charges a
870:Other legal aspects
674:Corporate registers
634:Rochdale Principles
388:Benefit corporation
214:Sole proprietorship
1720:on August 6, 2013.
1566:. Thomson Reuters.
1536:Edgar v. MITE Corp
1517:on 26 October 2014
1352:The New York Times
1226:Combined reporting
1160:964 A2d 106 (2009)
1126:488 A2d 858 (1985)
1075:Meinhard v. Salmon
954:Jeffrey W. Bullock
946:In February 2013,
883:, as opposed to a
854:Race to the bottom
815:service of process
743:), officially the
475:Aktiengesellschaft
447:Nevada corporation
1834:Delaware statutes
1333:978-0-691-23574-5
1191:
1190:
1185:directors' duties
1172:308 US 295 (1939)
1087:Guth v. Loft Inc.
906:Pursuant to the "
733:
732:
614:Limited liability
576:
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485:Ansvarlig selskap
372:Unlimited company
209:Shelf corporation
204:Shell corporation
192:Limited liability
16:(Redirected from
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1063:Keech v Sandford
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1767:(3): 753–759.
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505:Aksjeselskap
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495:Aktieselskab
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350:by guarantee
278:
268:
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152:Conglomerate
96:South Africa
1564:Findlaw.com
1298:21 December
1242:Corporation
1066:EWHC Ch J76
834:tax dodging
640:Ultra vires
360:proprietary
177:Partnership
172:Joint-stock
162:Corporation
157:Cooperative
1823:Categories
1741:2020-06-18
1679:2024-06-24
1259:Say on pay
1136:§102(b)(7)
924:income tax
860:New Jersey
848:See also:
765:New Jersey
757:U.S. state
697:Law portal
545:Osakeyhtiö
464:Aktiebolag
413:Series LLC
1773:0007-6899
1372:1 January
811:domiciles
585:Doctrines
355:by shares
71:Australia
1781:40688595
1521:13 April
996:See also
896:interest
864:New York
777:de facto
761:Delaware
669:Contract
602:De facto
434: /
248:Societas
66:Anguilla
35:a series
1736:rlf.com
1618:: 187.
844:History
795:Walmart
789:Fortune
755:in the
749:statute
569:more...
187:Limited
182:General
147:Company
127:Germany
111:Vietnam
1779:
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799:Amazon
563:(SARL)
538:(N.V.)
528:(K.K.)
518:(GmbH)
466:
455:Others
420:(LLLP)
365:public
344:(Ltd.)
319:(SCIO)
290:(EEIG)
250:
122:France
81:Canada
1777:JSTOR
1655:(PDF)
1644:(PDF)
1542:
1464:(3).
1454:(PDF)
1275:Notes
992:law.
900:usury
498:(A/S)
488:(ANS)
400:(LLC)
335:(IPS)
327:(CIC)
311:(CIO)
282:(SUP)
272:(SPE)
262:(SCE)
91:India
1769:ISSN
1620:SSRN
1544:U.S.
1523:2016
1490:ISBN
1374:2020
1328:ISBN
1300:2018
1183:and
1179:See
981:all
852:and
836:and
813:for
797:and
741:DGCL
735:The
554:S.A.
548:(Oy)
508:(AS)
478:(AG)
468:(AB)
252:(SE)
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759:of
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