London as Delaware?
8 Pages Posted: 12 Oct 2009
Date Written: 2009
With the tightening of U.S. securities regulation as part of the Sarbanes-Oxley Act, the United Kingdom’s more liberal laws have resulted in London surpassing New York as the world’s financial capital. This paper examines how that came about, and asks whether it is a permanent condition, just as Delaware many decades ago surpassed New Jersey as the U.S. capital for corporate chartering after New Jersey adopted stricter chartering laws. The paper concludes that in the future, neither London nor New York will maintain its current high profile - instead, a more decentralized, liberalized financial world will likely emerge.
Keywords: Delaware General Corporation Law, Model Business Corporation Act, Issuer Choice, Anti-takeover Provisions, Anti-takeover statutes, bedrock principle, Sarbanes-Oxley Act
JEL Classification: F00, F02, F21, F22, F30, G00, G15, G20, G28, G30, G38, K22
Suggested Citation: Suggested Citation