Type to search

Banking News

Civic groups call for investigation of Delaware LLC law

Avatar photo
Share

AP) — Civic groups in Delaware are pushing for the reform of the state’s popular system for limited liability companies.

The News Journal reports the Delaware Coalition for Open Government was joined by several other groups in asking Attorney General Matt Denn to appoint an independent counsel Monday.

The independent counsel would identify weaknesses in the Delaware Limited Liability Company Act, which the petition says allows LLCs to serve “as fronts to commit crimes.” Unlike other states, Delaware doesn’t require disclosing beneficial ownership information, so owners’ identities are often unclear.

Delaware’s absentee companies have made news recently. Backpage.com employees were hit with a 93-count indictment in April. And the October federal indictment of Paul Manafort and Rick Gates mentioned nine Delaware corporations and LLCs that helped shield payments from Ukraine.

Denn’s spokesman says the request “will be considered.”

Get the free DBT email newsletter  

Follow the people, companies and issues that matter most to business in Delaware.

Tags:

You Might also Like

Leave a Comment

Your email address will not be published. Required fields are marked *

Premier Digital Partners

© 2022 Delaware Business Times

Holiday flash sale! Subscribe to Delaware Business Times and save 50%.

Limited time offer. New subscribers only.

Holiday flash sale!

Subscribe to Delaware Business Times and save 50%

Limited time offer. New subscribers only.