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The Delaware General Corporation Law (DGCL) - The gold standard of US corporate law

Delaware General Corporation Law (DGCL) - The gold standard of US corporate law

The Delaware General Corporation Law (DGCL)

In the world of Company foundation and company law, the Delaware General Corporation Law (DGCL) has achieved an almost mythical status. This long-established legal framework of the US state of Delaware has evolved into one of the most influential and highly regarded corporate laws in the world. But what makes the DGCL so special?

Flexibility as a key feature

The DGCL is characterized by its remarkable flexibility. It is a so-called "enabling law" that offers companies far-reaching opportunities to adapt their organizational documents such as articles of association and rules of procedure to their specific needs. A prime example of this is the great freedom in structuring the management and supervisory bodies. Companies can choose either a one-tier or two-tier system and freely regulate aspects such as board size, committees, powers and terms of office of directors. Modern management structures are just as possible as the separation of chairman and CEO according to the company's own ideas. Such flexible rules allow companies to adapt their corporate governance efficiently and tailor it to their size, sector and development phase.

A case law treasure

Another reason for the DGCL's appeal is the extensive case law that has developed in Delaware over the decades...

...The combination of flexibility, rich case law and the expertise of the Delaware judicial system has made the DGCL a globally respected and influential corporate law. For company founders, board members and investors, such a solid legal framework is invaluable. The DGCL has established itself as the gold standard in this regard.

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Disclaimer: Please note that the above dates, tax rates and regulations may change over time. Do not make any independent decisions without first consulting an expert for your individual situation. It is in your interest to always receive individual information from an experienced expert who knows your situation.

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