As we have
previously reported, Delaware is in the midst of reforming its
unclaimed property audit rules, a move that will inevitably affect
the myriad businesses headquartered or incorporated there.
Recently, Delaware Governor Jack Markell signed into law Senate Bill 11, "An Act to Amend Title 12
of the Delaware Code Relating to Escheats." The law aims to
increase competition among outside, independent auditing firms and
to slow the revolving door between government and the private
sector. However, it does not address the
entirety of concerns that have been expressed by companies
holding unclaimed property. Auditors currently use
potentially unconstitutional methods to estimate the amounts
owed by holders when records are unavailable. The new law does not
address this practice, nor does it limit the time frame for which a
company can be audited, which currently extends back to 1981. Thus,
until the state can pass future amendments, and pending the
promulgation of a
