News

A Delaware Institution on the Business Benefits of Delaware

2 April, 2019

If you’re interested in knowing the legal benefits of coming to Delaware, look no further than David Swayze of Parkowski, Guerke & Swayze, P.A.

Among his many accomplishments, Swayze served in the administration of Governor Pierre “Pete” du Pont in the 1970s and 80s and was one of the architects of Delaware’s distinctive Financial Center Development Act of 1981 and subsequent banking legislation. The seminal legislation kickstarted Delaware’s journey to becoming a hub for the financial services sector. Swayze’s legal expertise and institutional knowledge of Delaware include financial services regulation, Delaware trust law and administration, government relations and legislation, and environmental, administrative and commercial law.

Swayze dates Delaware’s corporate-friendly environment back to the founding of the First State in 1787. The Delaware Court of Chancery is widely recognized as the preeminent forum internationally for adjudicating disputes involving the internal affairs of the thousands of Delaware corporations and other business entities. Its market-centered, unique competence in issues of business law is unmatched. The decisions are made in timely fashion by fair, experienced judges, versus somewhat unpredictable juries.  And privacy is kept at a premium; the information about privately-held companies is kept securely.

Swayze said that additional benefits for business in Delaware include:

  • A favorable corporate tax rate. Delaware has one of the most competitive corporate income tax rates in the Mid-Atlantic, at 8.7%.
  • Proximity to other major corporate centers. More than a million businesses, including Fortune 500 companies like AT&T, Bank of America, Coca-Cola and Wal-Mart, have chosen to incorporate in Delaware.
  • Small size supports access to stakeholders. “The ability to sit down with the governor, county executive, a mayor or congressional delegate is a special value-add for business here in Delaware,” Swayze said.
  • The Delaware general assembly annually updates the Delaware General Corporation Law (DGCL), with the assistance of the Delaware Corporate Bar. This keeps corporation law continuously responsive to business needs.

Swayze says Delaware’s distinctive corporate-friendly strategy continues with ongoing revisions to the Coastal Zone Act that are intended to encourage re-use of abandoned sites and allow more flexibility for bulk product transfers. “Delaware has always been sensitive to over-regulation,” he said.