Making Delaware Corporate Law: The Players' Incentives Part II

The state bar

In the previous post, I described the Delaware Way—the stolid, boring process by which the dominant corporate law state makes its law. As I also noted, however, in recent years there have been several high profile cases in which the Delaware Way broke down, leading to all sorts of exciting kerfuffles.

In order to understand why the Delaware Way usually works and why it sometimes breaks down, we need to understand the incentives of the three major players in the process: the legislature, the state bar, and the judiciary. In the first post, I discussed the incentives of the legislature. In this post, I turn to the incentives of the state bar.

Making Delaware Corporate Law: The Players' Incentives Part I