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    California and Delaware Franchise Taxes Are Similar In Name Only

    Recently, I came across a proxy statement filed a California corporation seeking shareholder approval to reincorporate in Delaware.  In the midst of a lengthy disquisition on the pros and cons of reincorporation, the issuer noted that the franchise...


    Valid Reasons May Exist For Reincorporating In Delaware, But This Isn't One Of Them

    I am always interested in the reasons that corporations give when seeking approval to reincorporate from California to Delaware.  One company in a recently filed proxy statement made the following claim (among others):

    reincorporation, Corporate Governance, ab 571, distributions to shareholders, Section 500