A.Delaware's Advantages small state,small size 1,New Hampshire新罕布什尔州 4,Rhode Island罗得岛州 7,Delaware德拉华州 2,Vermont佛蒙特州 5 Connecticut康里狄格州 8,Maryland马里兰州 3,Massachusetts马萨驻塞州 6,New Jersey新泽西州 9,West Virginia西弗吉尼亚州 Washington 华盛顿州 Maine Montana North 缅因州 Dakota Oregon 蒙他拿州 Vinnesota 北达料他州 期尼苏川 (2)(1) 俄勒冈州 Idaho Wisconsia Michigan 纽约 3) 爱达荷州 South Dakota 成斯康星州密欧根州 Wyoming 南达科他州 New York (54 怀俄明州 lowa Pennsyivania s Nebraska 宾夕法尼亚州 Nevada 爱荷华州 Ohio 内布拉斯加州 (7 内华达州 Utah 俄亥俄州 California 加利福尼亚州 犹他州 Colorado 科罗拉多州 Kansas Virginia Missouri 堪萨斯州 密苏里州 Kentucky 弗吉尼亚州 塔基州 North Carolia Tennessee Oklahoma South Arizona 亚利桑那州 New Mexico 俄克拉荷马州 Arkansas 阿肯色州 南 新墨西哥州 佐治亚州 Texas 德克萨斯州 路易斯安那 州 Alaska 阿拉斯加州 Hawaii 夏威夷州 Page 11
Page 11 small state, small size
B.Racing to the Bottom Justice Brandeis in Liggett v.Lee: Lesser States,eager for revenue derived from that traffic in charters had removed safeguards from their own incorporation laws. The race was not one of diligence but of laxity. The great industrial States yielded in order not to lose wholly the prospect of the revenue and control incident to domestic incorporation. William Cary: The first step for improving corporate law is to escape from the present predicament in which a pygmy among the 50 states prescribes,interprets,and indeed denigrates national corporate policy as an incentive to encourage incorporation within its borders.< Page 12
Page 12 • Justice Brandeis in Liggett v. Lee: • Lesser States, eager for revenue derived from that traf ic in charters had removed safeguards from their own incorporation laws. • The race was not one of diligence but of laxity. • The great industrial States yielded in order not to lose wholly the prospect of the revenue and control incident to domestic incorporation. • William Cary: • The first step for improving corporate law is to escape from the present predicament in which a pygmy among the 50 states prescribes, interprets, and indeed denigrates national corporate policy as an incentive to encourage incorporation within its borders
B.Racing to the Bottom Shareholders (investors): 1.can't make the reincorporation decision alone,act only after the board recommends 2.too dispersed to control,usually just rubber-stamp ·Managers: 1.first actor:the board 2.ask shareholders to vote to reincorporate by giving them a good news"package Legislator: panders to managers,often at the expense of shareholders Page 13
Page 13 • Shareholders (investors): 1. can’t make the reincorporation decision alone, act only after the board recommends 2. too dispersed to control, usually just rubber-stamp • Managers: 1. first actor: the board 2. ask shareholders to vote to reincorporate by giving them a “good news” package • Legislator: • panders to managers, often at the expense of shareholders