Court of Chancery

The Delaware Court of Chancery is a specialized equity court that serves as the preeminent forum for corporate litigation in the United States. Established in 1792, it is one of only a few remaining courts of chancery and handles disputes involving corporate governance, fiduciary duties, mergers and acquisitions, shareholder rights, and entity formation matters without juries — cases are decided by experienced chancellors and vice chancellors with deep corporate law expertise. Over 65% of Fortune 500 companies and more than 1.8 million entities are incorporated in Delaware, largely because of the Court of Chancery's predictable, sophisticated, and efficient handling of business disputes. The court typically resolves contested matters within 12–18 months, compared to 3–5 years in general jurisdiction courts, which reduces litigation uncertainty and legal costs for businesses. Key areas of jurisprudence include the business judgment rule, entire fairness standard, Revlon duties in change-of-control transactions, and Blasius enhanced scrutiny for actions affecting the shareholder franchise. The Court of Chancery's decisions are regularly cited by courts nationwide and create the body of corporate law that governs Delaware entities. For businesses choosing between Delaware and other states for entity formation, the Court of Chancery's expertise is a significant strategic advantage — particularly for companies anticipating venture capital fundraising, M&A activity, or complex multi-member governance structures. doola helps founders understand Delaware's legal advantages during entity formation and supports the ongoing compliance requirements that maintain an entity's good standing in Delaware's corporate ecosystem.