Describe how the judiciary in Delaware is favorable to large corporations?

Question

What will be an ideal response?

Answer 1

Delaware has a special court—the court of chancery—that hears and decides business cases. This court has been around for more than 200 years. In that time, it has interpreted Delaware corporation law favorably to large corporations in such matters as electing corporate boards of directors, eliminating negligence liability of outside directors, upholding the antitakeover provisions of the Delaware corporation code, and such. In addition, there are no emotional juries to worry about. The decisions of the chancery court are made by judges who are experts at deciding corporate law disputes. The court is known for issuing decisions favorable to large corporations as the court applies Delaware corporation law to decide disputes. Appeals from the court of chancery are brought directly to the supreme court of Delaware. Thus, Delaware courts have created a body of precedent of legal decisions that provides more assurance to Delaware corporations in trying to decide whether they will be sued and what the outcome will be if they do get sued.