The Court of Chancery in Delaware is well respected by business lawyers from coast to coast. A recent New York Times article (which I discussed in another recent post) explains that the Delaware Chancery Court has a reputation for quick and knowledgeable business decisions. This is one of several reasons that so many businesses are incorporated in Delaware.
Leo E. Strine, Jr. was recently confirmed as the new Chancellor of the Delaware Court. Chancellor Strine is a graduate of a top national law school (University of Pennsylvania) and worked for Skadden Arps in New York City (one of the most recognized corporate law firms in the United States). The new Chancellor previously served as Vice Chancellor of the Court, and has already written hundreds of business decisions. While there are many competent judges in other states, the Delaware Chancery Court has very specific expertise in business law. And it has a long tradition of excellence. Chancellor Strine is the 21st Chancellor of the Delaware Court since 1792.
There are a variety of reasons that many businesses are formed in Delaware. The long and very stable history of the Delaware Chancery Court, and the excellent qualifications of its judges, are among the many reasons that Delaware is often a good choice when forming a new business.