From Yahoo Finance: 2025-05-14 06:07:00

Investors in nine public companies worth over $1 billion each may vote to ditch Delaware as their place of incorporation, impacting the state’s standing as Corporate America’s capital. Companies like Tesla and Trump Media & Technology have already moved to Texas and Florida due to Delaware’s increasingly litigious environment for corporations with controlling stockholders.

Delaware, reliant on fees from chartering businesses, enacted legislation to prevent a corporate exodus following judicial rulings. While corporate law remains strict in Delaware, Nevada offers more protection for deals with controlling shareholders under the business judgment rule. Texas also passed amendments to reduce shareholder litigation threats, potentially attracting more companies to relocate.

Archer Aviation considers moving to Texas from Delaware, as other companies may also reconsider their incorporation state. Concerns about Delaware judges being activist and rewriting settled law have sparked nervousness among businesses. The shifting landscape of corporate law may prompt more companies to seek friendlier legal environments for their operations.



Read more at Yahoo Finance: In Tesla’s wake, more big companies propose voting “Dexit” to depart Delaware