Replies to post #11457 on Destiny Media Tech Inc (DSNY)

[4starman]

None. It's a good move. I am surprised they did not change to Delaware. 91% of out of state companies incorporate there. 50% of all Fortune 500 companies incorporated there. Jury free court system too.
I guess Nevada was closer to home.

https://www.rocketlawyer.com/article/incorporating-in-delaware-or-nevada-whats-the-best-option-for-my-business.rl

[Giovanni]

absolutly
Why go from an honest state to loss wages?

What are the disadvantages for commom stockholders?
Provided by Rwethereyet

Nevada law provides extremely strong protection against piercing the corporate veil, where a corporation's owners can be held responsible for the actions of a corporation. For instance, from 1987 to 2007, there was only one case that successfully pierced the corporate veil of a Nevada corporation, and in this case the veil was pierced due to fraud on the part of the corporation's owners.[citation needed]

Because the provisions on "piercing the corporate veil" are corporate governance matters, if a corporation chartered in California, for example, (which has much more creditor friendly provisions permitting this) is sued anywhere, California law applies, but if a corporation chartered in Nevada, which operates only in California, is sued in a California court, the California court would use Nevada law in determining what the requirements permitting this (Note that foreign corporations, including those, for example, incorporated in Nevada, may be subject to California Corporation Code 2115). On the issue of "piercing the corporate veil," Nevada law applies (which is much more supportive of the corporation's interest), even if the corporation only operates in California and has never had any other contact with Nevada and is simply chartered there as a "flag of convenience."