DD Support Board and Research Team

[1manband]

Nevada is an extremely popular state for penny stocks and shells for several reasons. It is extremely easy (probably too easy) to establish a corporation in Nevada through a registered agent. Once that company is established, Nevada laws are very pro-management and pro-secrecy. Nevada statutes are very lenient in terms of allowing management and Board of Directors to make changes and corporate actions quickly and easily.

Nevada is also very popular for another reason. Nevada allows full corporate indemnification for officers and directors. The Nevada statues are much stronger for indemnification, especially in cases of wrongdoing, than other states. This is very powerful cover for officers and directors who may be placing their own interests ahead of the common shareholders.

For these reasons I avoid owning shares in publicly traded Nevada corporations.