Delaware’s corporate legal community has become increasingly concerned about the rise in “inversions,” or businesses reincorporating in a foreign jurisdiction to reduce their tax burden. Although legal analysts debate the impact inversions will have on Delaware’s corporate dominance, they all agree the only remedy to the problem is at the national level.
In the past decade, 47 companies, all Delaware corporations, have reincorporated overseas after facilitating a merger or acquisition with a company outside the United States, according to data from the Congressional Research Service. In the past month, two Delaware corporations—AbbVie and Salix Pharmaceuticals—both moved forward to reinvent themselves as foreign entities.
