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Posted by: GordonGekko1982 Date: Monday, March 26, 2007 8:10:39 AM
In reply to: serfdom who wrote msg# 75393 Post # of 82354 [Send a link via email]
Serf, I don't have PM, so I hope you wont mind this:

I guess we will agree to disagree then, but lumping Delaware in with Nevada and Florida is preposterous. The fact remains that: (1) the majority of the best companies in the world are incorporated in Delaware; (2) the courts are the most well respected for corporations; (3) although there are similarities involving shareholder voting, the differences between these states is massive when it comes to shareholder rights.

Saying it is a "Red-Flag" is not only absurd, it is misleading to people who read your posts. Odds are that the ratio of Florida/Nevada POS's per good company would be somewhere around 90:1, whereas Delaware the exact opposite would be true. You would probably need to spend awhile looking up Delaware Corporation's which are scammy, while it would take seconds to compose a list of the best of the best incorporated there.

Just because shareholders do not have as much direct control on some of the aspects of amendments and bylaws in Delaware, but the remainder of the requirements are heightened in terms of good faith, fiduciary duty, and the level of specificty governing corporations, is analogous to stating: Mercedes SL McClaren's, Buick Skylark's, and older Ford Mustang's all get low MPG efficientsy - therefore, all 3 are similar, and lack reliabilty. Which states that have more stringent requirements in terms of all shareholders getting to vote would you recommend, and what are some of the company successes that you could point to as a result? The fact remains that laissez-faire remains the essential element for corporate success, and micro-management deters growth and ROI. However, Nevada is virtually the wild-west in terms of corporate governance, and the fact that there is no good faith requirement other than prohibition of fraud is the reason Nevada is a Red-Flag, while Delaware is not.