![]() ![]() There are numerous other issues involving the State’s interpretation of its unclaimed property laws that unduly burden holders and that are subject to legal challenge. You may not challenge Delaware’s legal positions while in the VDA programĪrguably, the most substantial issue in Delaware’s application of its unclaimed property law is the state’s estimation methods, which have the potential to produce vastly inflated liability exposure. Unfortunately, that letter is often followed by letters from multiple states joining Delaware’s unclaimed property audit.īefore enrolling in the VDA program, companies should take into account the considerations below to determine whether the benefits of the VDA program will offset the costs:ġ. Other companies have ignored the letters because only their parent holding company is incorporated in Delaware, but the operating entities are incorporated elsewhere and, therefore, they incorrectly believe that they can ignore the letter, only to later receive a notice of audit by Delaware’s State Escheator. Many recipients of these letters have ignored them on grounds that the company believes it is in compliance with Delaware law or believes it has had nothing to report to Delaware. It is very important that a company not ignore the Secretary of State invitation to participate in the VDA program. Once a company receives a notice of an audit by the State of Delaware Department of Finance, it will not be eligible to enter into the VDA program. If an invitee does not enroll in the VDA program within 60 days of the invitation mailing, the SOS will refer the company to the State Escheator for examination. Invitees will have 60 days from the date of the invitation to enroll in the VDA program. The following are the approximate dates in the current calendar year that the SOS has announced it is sending invitations for the Delaware SOS VDA Program. The SOS does invite companies who already file unclaimed property to participate. ![]() 1 All companies should watch for the invitations. The Secretary of State (“SOS”) plans to send out “invitations” to companies to enter the VDA program pursuant to 12 Del. ![]()
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