Americans!! A public service film-

mrbigbluelight

I agree, Tony, a corporation should have the right to move anywhere they wish to.

I didn't explain it very well (too concerned about that free riding crop thing :redface:) but, in a nutshell, there are more business entities incorporated in Delaware than there are people.

Checking out "LegalzoomDOTcom" (as recommended by "Handel on the Law") gives a little insight on the pluses a company can receive in Delware. Save you 4 years at Harvard Law.

http://info.legalzoom.com/companies-incorporate-delaware-20044.html

Nice reasonable explanations. Some valid IMO (state laws may vary widely), some potentially troublesome IMO (ALL litigation is determined by a judge, not a jury), and some malarkey (" it allows shareholders to shield directors from personal liability for their actions by inserting appropriate language in corporate bylaws.").
"Allows shareholders" ? That can be done in any state.

Okay, I'm getting side-tracked again. The point is that the corporations that are incorporated in Delaware aren't necessarily IN Delaware. Perfectly legal, of course.
Why they do it ? A large corporation (and I'm MAKING UP AN EXAMPLE USING BOEING) has plants all over the US. California, Missouri, Texas, and ? Boeing creates a shell company called "Boeing Intellectual Property, Patents, Trademarks, And Other Smart Stuff" and incorporates it in Delaware. They then "lease" these rights back to their plants all over the US. Somebody in California sues over an issue that is "leased", then the case HAS to go to court in Delaware. Where they find a corporate-friendly judge.

A monstrous shell game, IMO.
Is this the best, most efficient way to run a train ? I don't think so.

tonyb

True my good man, but.....is it the fault of corporations taking advantage of a totally legal process, or those who make the laws allowing this to happen ? It all comes full circle my friend, but it is the corporation that gets demonized. Hence the layers of government, to shield any accountability from taking place.