Delaware braces for change
Delaware-based The News Journal explores the economic impact for Delaware being “the pre-eminent legal home of Corporate America” in a great article that reveals Delaware’s tremendous dependency upon corporate revenue. Several gems are sprinkled throughout…
Charles Elson sounds concerned about Delaware’s economy and his personal taxes much more than shareholders’ rights:
“Imagine Delaware if the worst were to happen [federal legislation which would likely mandate stronger shareholder rights], said Charles Elson, director of the Weinberg Center of Corporate Governance at the University of Delaware. ‘It would bankrupt us,” he said. “Overnight we would go broke.”
So he’s for shareholders’ rights, except when it causes his property taxes to rise.
There are also slaps at Delaware itself:
“‘Delaware is an onshore haven in the business of selling legal advantage to people outside the state,’ said Lynn LoPucki, a UCLA law professor.”
Ouch.
One last keeper, this from Harvard Law School professor Mark Roe:
“Delaware was lucky Enron wasn’t a Delaware corporation.”
For more, click here.
