Delaware’s Flexible Corporate Laws Attract Business
The General Corporation Law (Title 8, Chapter 1 of the Delaware Code) is the statute governing corporate law in the U.S. state of Delaware. It has been the most important jurisdiction in United States corporate law since 10th March 1899 when it enacted corporate-friendly laws to attract businesses from New York. The general incorporation legislation made it simple for anyone to form a corporation by simply raising money and filing articles of incorporation with the state’s Secretary of State. Over 50% of publicly traded corporations in the United States and 60% of the Fortune 500 are incorporated in the state.
Businesses choose Delaware simply because of their flexible corporate laws, highly respected Court of Chancery, and a business-friendly State Government. Delaware maintains a separate corporate court system, called the Delaware Court of Chancery, that does not use juries, but only uses judges appointed for their expertise in corporate law. The Delaware Court of Chancery is a 210-year-old business court that has written most of the modern U.S. corporation case law.
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