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Delaware acquired its status as a corporate haven in the early 20th century. Following the example of New Jersey, which enacted corporate-friendly laws at the end of the 19th century to attract businesses [5] from New York, Delaware adopted on March 10, 1899, a general incorporation act aimed at attracting more businesses.
Delaware's economy shifted to a manufacturing base in the late 19th century, led by the transformation of the DuPont Company. [1] Modern growth in the financial workforce has overtaken the manufacturing sector in the state's economy. The Delaware General Corporation Law provides a flexible and stable framework for national incorporation. [2]
Many companies prefer to incorporate in Delaware because of the state's corporate-friendly tax system and the Court's historical expertise in business litigation. The Court's judges tend to be longtime members of the Delaware State Bar Association who have spent their careers doing corporate litigation.
Gov. Matt Meyer of Delaware says things may "need to change" as companies threaten to incorporate elsewhere. Elon Musk has led the charge to leave Delaware after a court rejected his Tesla pay ...
Elon Musk is threatening to move the state of incorporation for Tesla, his half-a-trillion-dollar company, from Delaware to Texas after a judge in the First State voided a $55.8 billion ...
Delaware itself became popular as an arbitrage on jurisdictions with higher taxes and tougher rules. It allows companies to easily incorporate without the fuss of having to do business there.
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