Two law professors on the perilous position of Delaware
For two decades Marcel Kahan and Edward Rock have studied corporate control. Their new paper argues that Delaware’s lawmaking process is breaking down.
Delaware is the legal home of more than 2 million corporations, including more than two-thirds of the Fortune 500, thanks to well-developed case law and experienced courts. In “The New Political Economy of Delaware Corporate Lawmaking”, published in the Journal of Corporation Law in June, NYU Law professors Marcel Kahan and Edward Rock argue that the state’s lead may be at risk.
In an interview published by NYU Law, they point to a breakdown in how Delaware makes corporate law. Two reasons they give are growing competition in the legal market and more power concentrated in the hands of controlling shareholders. Kahan is the George T. Lowy Professor of Law and Rock the Martin Lipton Professor of Law; the pair have collaborated on shareholder rights and governance for about twenty years.
- Marcel KahanGeorge T. Lowy Professor of Law, NYU
- Edward RockMartin Lipton Professor of Law, NYU
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