Tuesday, July 22, 2014

Connecticut Seeks to Become Desirable Spot for Businesses to Register

For many reasons, major companies have traditionally chosen to register their businesses in Delaware. Delaware is highly regarded for having a comprehensive set of business laws and a skilled judicial system that is capable of adjudicating the most complex corporate law disputes. As a result, Delaware generates more than $850 million in corporate tax revenues every year.

An Act Concerning the Modernization of Connecticut Corporation Law is a new initiative signed into law by Governor Malloy on June 5, 2014. The purpose of this initiative is to develop ways to attract large businesses to register in Connecticut. The law requires the Chief Court Administrator to create a special court docket that will adjudicate only corporate law disputes. The law also authorizes the establishment of the Commission on Connecticut’s Leadership in Corporation and Business Law, which will be comprised of lawmakers, attorneys, and other governmental officials, who will discuss possible strategies and make recommendations.  Changes that the Commission could recommend include revisions to the Connecticut corporate statutes and making more accessible the corporate records held in the Secretary of State's office. The Commission will submit a 10 year action plan due to the legislature in October 2015.

For all of your business law questions, contact the experienced and knowledgeable business lawyers of Brown Paindiris & Scott.