State Law and Corporate Governance

The video discusses the role of state law in corporate governance, highlighting how states develop their own corporate laws or adopt the Model Business Corporations Act. It emphasizes Delaware's advantages for corporations, including its broad corporate law, responsive legislature, and the specialized Chancery Court, which provides expert judgment on corporate matters without jury trials. These factors make Delaware a preferred state for corporate formation and governance.

What is the primary body of law that governs the creation and maintenance of corporate structures?

• Municipal law

• International law

• State law

• Federal law

Why do many corporations choose to incorporate in Delaware?

• For its advantageous corporate laws

• Due to its proximity to major cities

• Because it has the best weather

• Because it has the lowest taxes

What is a unique feature of Delaware's Chancery Court?

• It is the oldest court in the United States

• It is a specialized court for business matters

• It allows for jury trials in all cases

• It only handles criminal cases

What is the role of the chancellor in Delaware's Chancery Court?

• To oversee criminal trials

• To act as a special referee in corporate law cases

• To manage state finances

• To legislate new corporate laws

How does Delaware's legislature respond to corporate law issues?

• Swiftly and proactively

• With a focus on international law

• Very slowly and cautiously

• By consulting with other states