Delaware Adopts Unclaimed Property Voluntary Disclosure Program

In an effort to encourage companies to disclose and report their possession of unclaimed property, Delaware has provided such entities with a limited opportunity to enter into a voluntary disclosure agreement ("VDA"), which would significantly reduce the potential liability associated with failure to adhere to the state's unclaimed property laws. All Delaware business entities are eligible to participate in the VDA program so long as they have not previously received a Notice of Audit, are not currently under audit, and have not entered into a prior voluntary disclosure program with the Delaware Department of Finance as of June 30, 2012.

Most notably, the VDA program reduces the time period during which companies are subject to assessment from 31 years to 16 years for companies that enter into VDAs prior to June 30, 2013, and make full payment or enter into payment plans by June 30, 2014. The program would also limit the authority of the Secretary of State and the