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CALIFORNIA CORPORATE & SECURITIES LAW

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Nevada Seizes Delaware’s Business Entity Formation Crown

Delaware has long dominated the market for incorporations.  Thus, I was surprised to see University of Nevada Law Professor Eric H. Franklin write that Nevada enjoys a 4 to 1 advantage over Delaware in corporate formations.  If this seems inexplicable, there is an explanation.  Delaware accounts for three times as many business formations as Nevada.  Nevada’s lead is confined to a small subset of these entities – benefit corporations.

Professor Franklin credits Nevada’s lead to the design of the Nevada Secretary of State’s online incorporation feature known as SilverFlume. See NV SOS Introduces Sleek New B2G Solution. Professor Franklin’s preliminary research reveals:

[T]he vast majority of benefit corporations were probably formed unintentionally. For example, of the 697 benefit corporations formed in Nevada in 2014, only one entity has posted the required annual benefit report on its website.

Proponents of online legal services should take note.  The design of the system may result in unintentional or misunderstood results.

Nemzeti dal

Sixty years ago this weekend, thousands of students silently marched to the statue of Sandor Petofi in Pest, Hungary.  The students’ march ignited a revolt against Hungary’s Soviet sponsored puppet government.  For a few days, it appeared that the Hungarian people had shaken off Soviet domination.  Then in early November, Soviet troops invaded and brutally suppressed the revolt.  Thousands of Hungarian freedom fighters were slaughtered.  Eastern Europe remained enslaved for a generation.

Nemzeti dal, or National Song, was written by Sandor Petofi, a 19th century poet beloved by Hungarians.  Below are the opening lines of Nemzeti dal, translated by George Szirtes:

On your feet now, Hungary calls you!
Now is the moment, nothing stalls you,
Shall we be slaves or men set free
That is the question, answer me!

If you are interested in learning more about the tragic history of the 1956 Hungarian revolution, I recommend John P.C. Matthews book, Explosion The Hungarian Revolution of 1956.

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