Description: This law requires real estate developers to provide a public offering statement to potential investors in certain real estate projects, ensuring full disclosure.
Scope: It mandates that the offering statement includes detailed information about the real estate project, such as financial projections, risks, and legal obligations, protecting investors from fraudulent practices.
Description: This Act regulates investment companies that do business in Delaware, ensuring that they operate in a way that protects investors and maintains transparency.
Scope: The Act outlines the requirements for registering and operating investment companies, emphasizing fiduciary duties and the safeguarding of investor capital.
Description: The Delaware Limited Liability Company (LLC) Act governs the formation, operation, and dissolution of LLCs in Delaware. LLCs are commonly used by investors due to their flexibility and tax benefits.
Scope: It provides guidelines on how LLCs are structured, how they operate, and how liabilities are handled, offering significant protections to both managers and members.
Description: This Act governs the formation and operation of business trusts in Delaware, providing a legal structure for companies to engage in business activities while protecting investor interests.
Scope: The Act defines the responsibilities of trustees and the rights of beneficiaries, ensuring transparent and fair business practices within Delaware’s legal framework for business trusts.
Description: The DGCL provides the legal framework for the creation and governance of corporations in Delaware, widely used by businesses and investors due to its flexibility and investor protections.
Scope: This law governs corporate formation, operation, and dissolution, and it offers various provisions that protect shareholder rights, making Delaware an attractive state for incorporating companies.
Description: The Delaware Securities Act regulates the offer and sale of securities within the state to protect investors and prevent fraudulent activities.
Scope: It requires securities offerings to be registered or qualify for an exemption. The law also mandates that brokers, dealers, and investment advisers are licensed and comply with disclosure and transparency requirements.
Oversight for corporate structures and investor rights.
Example: Delaware General Corporation Law (DGCL).
Overview:
Regulates Delaware’s securities market to ensure compliance (Not the best source for accredited investors, however, it provides general information and resources)
Specific Regulations:
Delaware Securities Act
Resources:
Provides investor resources on fraud prevention