The Delaware chapters of advocacy groups Americans for Democratic Action and the National Association of Social Workers are hosting a public forum Wednesday night on corporate transparency.
The groups are joining some state lawmakers in Delaware in urging the First State’s congressional delegation to support the Incorporation Transparency and Law Enforcement Assistance Act. If passed, the federal law would require states to collect more information from companies when they incorporate, including the primary owners of the businesses.
Stefanie Ostfeld, the senior policy advisor at the advocacy group Global Witness, will speak at Wednesday night’s discussion. She says Delaware’s unique position in the corporate world highlights a need for such a law.
"You often hear from tax havens like the Cayman Islands and the British Virgin Islands that Delaware is their competition," said Ostfeld.
She adds that makes Delaware of particular interest when it comes to corporate transparency.
"The United States is one of the easiest places to get an untraceable company, but Delaware tops the list for how easy it is to get a company without disclosing who you are," said Ostfeld. "There was a study that was looking into how easy it was get a company if it looked you’re a risk for terrorist finance or corruption, and they found corporate service providers in Delaware willing to set up companies in both of those situations."
The Markell administration does not support the legislation, saying it would “send the wrong message” to thousands of businesses that incorporate in the First State.
Ostfeld questions whether companies intent on keeping some information private are companies states would want incorporating there in the first place.
The forum on corporate transparency begins at 7pm Wednesday at the Community Service Building in Wilmington.