Contact us with your California corporate & securities law questions (949) 353-6347 or Contact us here

Is California "The Biggest Loser"?

I am very excited to be moderating a panel discussion this weekend at a symposium entitled Can Delaware Be Dethroned? Evaluating Delaware's Dominance Of Corporate Law.  The symposium is being presented by the Lowell Milken Institute for Business Law and Policy at UCLA's School of Law.  My panel consists of distinguished legal scholars from around the country: Michal Barzuza (University of Virginia School of Law), Jill E. Fisch (University of Pennsylvania Law School); Sean J. Griffith (Fordham Law School); and Lynn M. LoPucki (University of California School of Law.

The symposium's title restates what we already know - Delaware is sitting on the throne of corporate law.  California, in contrast, is a serf:

California, home to 1,210 [public] companies but state of incorporation for only 112, is the biggest loser.

LoPucki, Corporate Charter Competition.  But was King Henry correct that "uneasy lies the head that wears the crown"?  Professor Barzuza notes that Nevada has been successful in moving up in the world where California has not:

Recent years have witnessed a surge in the use of Nevada as a “laboratory” for studying the impact of a lax legal regime on corporate behavior and performance.  After all, efforts by Nevada lawmakers to attract out-of-state incorporations have been largely successful. Among large public firms, Nevada ranks second only to Delaware in out-of state incorporations, and the number of public companies incorporated in Nevada more than doubled between 1990 and 2010. While reliable statistics on private firm incorporations is lacking, anecdotal evidence suggests that Nevada has been at least as successful attracting small and private firms as it has in the public space.

Barzuza & Smith, Nevada's Corporate Law & Firms: What We Know and What We Don't (Yet).

Home - Can You Go There?

Yesterday, Broc Romanek captioned a post in his eponymous blog "You Can Go Home Again (If You’re Mary Jo White)".  The post concerned former SEC Chair Mary Jo White's return to the law firm of Debevoise & Plimpton.  Broc's caption is an allusion to Thomas Wolfe's posthumous novel, You Can't Go Home Again.  I have a special fondness for Wolfe as he and I both spent time in Asheville, North Carolina and went to school at Harvard.  Wolfe's book, Look Homeward Angel, is one of my favorites.  It is a semiautobiographical novel of growing up in Asheville.  Wolfe's descriptions of the locals was not flattering.  You Can't Go Home Again tells the story of a writer who makes a name for himself by writing about his hometown only to incur the obloquy of his erstwhile neighbors. A recent movie, Genius, tells the story of Wolfe and his first editor, Maxwell Perkins.  I enjoyed the film immensely and marvel that someone would actually have the temerity to make a movie about an author and a book editor.  Before Wolfe died, he switched publishing houses and his posthumous works were assembled from his voluminous manuscripts by Edward Aswell.

IMG_7109

Asheville, NC

Share on:

Nevada Corporations, lynn LoPucki, Michal Barzuza, Broc Romanek, Corporate Governance, You can't go home again

ANY QUESTIONS REGARDING CALIFORNIA CORPORATE AND SECURITIES LAW? CONTACT US DIRECTLY

We offer expert advice with the intricacies of California law.

Our years of experience and expertise allow us to help clients navigate the business laws in California.

CONTACT US

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

ABOUT OUR AUTHOR

30172DBAB0084D3A8F39D7AF0A8E79BC.ashx Keith Paul Bishop
Partner at Allen Matkins
(949) 353-6328
 Contact me
Learn More About Keith

nominee-badge

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

CATEGORIES

see all

RECOGNITION

YOUTUBE

FACEBOOK