Delaware, one of the least populated states in the US, has oversized power when it comes to corporate law.
Being one of the smallest and least populous states doesn’t stop Delaware from dwarfing the rest of America as a business hotspot. Two-thirds of Fortune 500 companies incorporate in the state, making them subject to local laws that require them to prioritize shareholder profit no matter where they do business. Journalist Alana Semuels explores how this “tiny” state of fewer than a million people has attracted corporations since the early 1900s, illuminating both history and controversy. getAbstract recommends this eye-opening article to business owners, employees, lawmakers and anyone interested in US corporate law.
In this summary, you will learn
- Why Delaware is a hotspot for US business incorporation,
- How Delaware’s rules became the “national law of corporations” over time, and
- What changes Delaware and other states can make to become more “democratic."
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