In today's New York Times, Delaware is bashed in a smear piece that attacks the state's corporate law with an article entitled To Delaware, With Love, that is light on research, weak on substantive analysis and replete with cliches that add nothing new to the conversation. Trotting out the "usual suspects", such as companies that have been formed for nefarious purposes (a market for which Delaware can hardly be said to have a monopoly), the article adds more heat than light on the subject of Delaware's role among the 50 states and in the world in terms of a forum to incorporate. Yes, Delaware has more business entities that use it as their corporate registered address than it has citizens, but is that ipso facto evidence in support of any position? It is a state with less than one million residents, and slightly less than one million entities use Delaware as their state of incorporation. Now for more meaningful details.
As if to support the notion that more federal intrusion in this area is needed, the article uses a faulty syllogism in connection with a quote from a federal official to try to make the connection between ease of formation and criminal activity. Among the other inaccurate parts of the article lacking in nuance are the following:
Read more Delaware business litigation case summaries and commentary on Delaware Corporate and Commercial Litigation Blog, a blog hosted by Francis G.X. Pileggi, of Eckert Seamans.
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