Delaware’s Corporate-Friendly Brand ‘Facing an Unusual Amount of Pressure’
Delaware’s “corporate-friendly image” is being threatened by the state’s unclaimed property law, as well as a new law banning corporate “fee-shifting” by-laws, reports the Wilmington (DE) News-Journal‘s Jonathan Starkey.
“The state’s unclaimed property law — which requires companies to turn over assets like uncashed checks and dormant stock accounts when there is no clear owner — is facing a constitutional challenge in federal court,” reports Starkey, “and revenue from the program is tanking amid uncertainty.”
In terms of the fee-shifting ban, Starkey reports that ILR President Lisa A. Rickard expressed disappointment that “Delaware chose not to enact measures to deter abusive merger-and-acquisition lawsuits while prohibiting an important and useful tool for combating these unjustified lawsuits.”
Read the full story here.
