| 1. |
Have a documented non-tax business purpose for its existence. |
| 2. |
Own or rent usable office space, furniture and office equipment in Delaware. |
| 3. |
Establish one or more Delaware bank accounts through which investment income is
collected. Any dividends paid should be drawn on the Delaware bank account(s). Loans or
equity investments made by the DHC should be originated in the Delaware account(s). In
addition, disbursements for the DHC's operations (rent, compensation, Delaware franchise
tax, etc.) should be made from the account(s). |
| 4. |
Use a Delaware address for correspondence and the filing of payroll and other tax
returns. |
| 5. |
Employ individuals who discharge their duties within the State of Delaware. |
| 6. |
Order and use corporate stationery and business cards with the Delaware address and
maintain a telephone number for the Delaware office. |
| 7. |
Perform all accounting functions and keep all accounting and corporate records in
Delaware. |
| 8. |
Retain Delaware personnel and/or independent contractors to maintain custody and
protect and enhance the assets of the investment holding company. |
| 9. |
Conduct regular Board of Directors, shareholder, and management committee meetings at
the DHC office. Maintain minutes, resolutions, and other documentation of the proceedings. |
| 10. |
Have Delaware employee(s) initiate and/or confirm activity flowing through investment
accounts. |
| 11. |
Originate contracts and orders including investment buy/sell requests in Delaware and
use a Delaware address. Additionally, an employee, officer or director in Delaware should
be authorized to make such decisions. |
| 12. |
Meticulously document all transactions between the DHC and any other affiliate on
terms that fall within the range of acceptable business practice and economic terms of the
transaction (at arm's length). |
