Startups

Delaware’s courts are changing ‘the deal,’ says NYT

“Delaware judges are now exercising this power with a vengeance to impose their worldview of deal-making.”

The Delaware Court of Chancery plays by a unique set of rules. (Photo by Flickr user Mike Mahaffie, used under a Creative Commons license)

In a recent New York Times article, “The Long Reach of Delaware’s Corporate Influence,” Steven Davidoff Solomon writes about how Delaware’s courts have changed how deals are done, “setting and changing the rules by which deal makers play.”
Solomon writes:

Delaware casts an enormous shadow over deals because more than 60 percent of public companies are incorporated there. This critical mass means that Delaware decides how companies are governed and is so prominent that its decisions on corporate law influence how other state courts act.

Technical.ly Delaware has also explored the topic of why so many companies incorporate in Delaware. Registered business entities actually outnumber residents.
The New York Times reports that the federal government’s regulator of the securities markets — the Securities and Exchange Commission — doesn’t seem to be interested in regulating the state’s deals.
“Delaware judges are now exercising this power with a vengeance to impose their worldview of deal-making,” Solomon writes.
Read the full story

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

19 tech and entrepreneurship events to check out before the holidays

EDA officials are ‘hopeful’ Tech Hubs program will live on under Trump

AI is being used in more and more of the hiring process, especially at high-volume companies

This Week in Jobs: 27 hot open roles to warm up a frosty career

Technically Media