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North Dakota shareholder law experiment

"Only two publicly traded companies are incorporated in North Dakota. But last year lawmakers there -- prodded by out-of-state activists including Carl Icahn -- enacted the nation's most shareholder-friendly corporate-governance law," reports the WSJ. The idea is that shareholders can then pressure companies to reincorporate in North Dakota as a way of certifying that they intend to give shareholders wider (or at least different) rights than they would possess in a state like Delaware. Larry Ribstein, although supportive of a competitive market between states in corporate governance, doesn't think this particular experiment is likely to bear much fruit.

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Rafael Mangual
Project Manager,
Legal Policy

Katherine Lazarski
Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.