The verdict against Overstock likely means that Delaware will further scrutinize companies utilizing similar giftco structures and could possibly subject them to litigation or audit, even forcing some to re-domesticate outside of Delaware to avoid such scrutiny. Gift card holders should be overly cautious and be prepared to defend their organizational structures to the state.
Public Corporations (42 articles)
Through proactive shareholder outreach and location programs, public corporations can improve investor communication and retain at-risk shareholders, while reducing the risk of identity theft, fraud, fines, penalties, and audits. Here you will find best practices and unclaimed property news that impacts public corporations.
In recent weeks, both Arizona and Utah have introduced bills seeking to amend certain provisions of their unclaimed property laws relating to gift cards. Arizona only proposes changes to gift cards, while Utah’s provisions would also impact stored value cards and 529 College Savings Plans.
Keane has received notification from the Delaware Secretary of State’s office that in 2 weeks it will be mailing notices to holders whom it believes to be non-compliant with Delaware escheat law. Holders will have 60 days from mail date to enroll in the SOS VDA program or risk referral to State Escheator for examination. Below is the full text of the notification.
Many companies rarely, if ever, view themselves as the rightful owner of unclaimed or abandoned property. However, businesses make up the largest share of owners entitled to the estimated $40-50 Billion in unclaimed assets currently held by state and municipal governments and treasuries. This post will offer guidance on how businesses may prepare to recover assets owed to their organization.