Business Law Journal

Many California businesses incorporate in Delaware. It is a common, and sometimes sensible choice. But incorporating elsewhere does not let a company sidestep the protections California law provides its resident shareholders. A new decision from California’s Court of Appeal, Salamon v. Orchid Global, Inc., drives that point home — and it is required reading for anyone who owns shares in, sits on the board of, or advises a Delaware company that calls California home.