Comments on: Nevada and the market for corporate law http://truthonthemarket.com/2011/05/27/nevada-and-the-market-for-corporate-law/ Academic commentary on law, business, economics and more Thu, 09 May 2013 22:36:15 +0000 hourly 1 http://wordpress.com/ By: Nevada’s Share of Corporate Charters Leads 48 Other States! « California Corporate & Securities Law http://truthonthemarket.com/2011/05/27/nevada-and-the-market-for-corporate-law/#comment-27482 Wed, 01 Jun 2011 09:06:36 +0000 http://truthonthemarket.com/?p=11410#comment-27482 [...] I came across this blog posting by Professor Larry Ribstein at the University of Illinois College of Law that discusses the role of [...]

]]> By: Stones Cry Out - If they keep silent… » Things Heard: e175v1n2 http://truthonthemarket.com/2011/05/27/nevada-and-the-market-for-corporate-law/#comment-27467 Tue, 31 May 2011 13:22:07 +0000 http://truthonthemarket.com/?p=11410#comment-27467 [...] Comparing economic stresses. [...]

]]> By: north fork investor http://truthonthemarket.com/2011/05/27/nevada-and-the-market-for-corporate-law/#comment-27397 Fri, 27 May 2011 14:56:57 +0000 http://truthonthemarket.com/?p=11410#comment-27397 I’m a big believer that small firms need a place to incorporate that is cheaper than Delaware. Still my experience as a risk arb both before and after Nevada began its big campaign to attract incorporation business is that Nevada companies rank among the shadiest in our marketplace. Hence its shell corporations remain the targets of choice for chinese reverse mergers–for reasons discussed in the article you cite. I’m no academic but I’m sure the evidence will
eventually show it is not generally efficiency that attracts companies to Nevada incorporation. It is more likely to be “race to the bottom” factors. After all find me the state who says (and adopts laws that say) explicitly “incorporate here–you get Delaware law without the pricetag”. Certainly if this was just a matter of efficiency you would get some state who would do just that and that might get some silicon valley business.

I also chuckle at the quotes from Wilson Sonsini’s David Berger given his recent experiences (that ended well for him thanks to Greg Williams of Richards, Layton) with Chancellor Laster in representing Nighthawk Radiology in the Virtual Radiologic merger-related shareholder litigation.

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