Posted on 04/13/2025 7:47:20 AM PDT by DFG
Delaware’s new Governor has dismissed Texas and Nevada's attempts to steal companies incorporated in The First State.
Matt Meyer, just two months into office, has already made significant changes to the state's corporate laws, including limiting shareholders’ ability to sue company founders.
The rapid changes are an attempt to stem the tide of companies leaving Delaware to incorporate in other states — dubbed 'Dexit' — but critics argue it merely makes the state friendlier to billionaires. Tesla threatened to leave the state when Tesla was sued over the hefty pay package for Elon Musk.
More than 60 percent of the S&P 500 companies are incorporated in Delaware. Meyer wants to keep them since they pay huge fees to be incorporated there, and get the protection of its state laws, which are are sympathetic to big companies.
In fact, the state's corporate fees generate $2 billion annually, making up about a third of the state’s budget.
Texas and Nevada have been circling the First State's lucrative incorporation supremacy for years, offering tax incentives and looser corporate laws to lure away founders and their companies.
Now Governor Meyer has introduced sweeping changes to Delaware law his message to those states is clear: you can try, but you will not succeed.
‘Delaware had been the global leader in corporate franchise for over 100 years,’ Meyer told DailyMail.com.
‘Before Delaware, New Jersey was the leader and New Jersey lost it because they weren't nimble. They didn't change with the times.’
The high profile case of a Delaware court blocking a $55.8 billion pay package from Tesla to Elon Musk threw the region's status as the premier incorporation destination into sharp relief.
In response Musk uprooted Tesla's legal home to Texas, spurring several other billionaire-led companies to leave Delaware too.
(Excerpt) Read more at dailymail.co.uk ...
‘Before Delaware, New Jersey was the leader and New Jersey lost it because they weren’t nimble. They didn’t change with the times.’
Blues states don’t have the brains to mock anybody. They’re all insane.
Texas’s governor Greg Abbott, a Trump loyalist, has made highly publicized efforts to lure companies to the Lone Star state.
Meyer dismissed the idea that Texas or Nevada are a threat to its incorporation supremacy.
‘It’s nothing new, North Dakota tried 20 years ago,’ Meyer said.
‘Delaware had been the global leader in corporate franchise for over 100 years,’ Meyer told DailyMail.com.
‘Before Delaware, New Jersey was the leader and New Jersey lost it because they weren’t nimble. They didn’t change with the times.’
That’s when BOTH states were what would NOW be considered conservative.
Delaware has “changed with the times”, alright....for the worse.
Try and spin it any way you want dude.....Dropbox and Meta are gone or about to leave your state.
More reality of living in a draconian liberal utopia.
Delaware is also known for being the longtime home of former president Joe Biden
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from the article. The headline is a misdirect? I did not see mocking in the article but that doesn’t mean it wasn’t there?
In fact, the state’s corporate fees generate $2 billion annually, making up about a third of the state’s budget.
Don’t look back, somebody might be gaining on you.
You only sell one thing in this world, that is your time, and you only buy one thing, that is your satisfaction.
If you don’t get satisfaction, your time spent is wasted.
Yeah. Well we’re moving our incorporation to Texas after what some douchebag Delaware judge did to Musk.
democraps and their woke dnc party judge screwed this up for Delaware. Revenue generated from their incorporation laws are a third of the states revenue. THey put all that in jeopardy because orange man ban and elon.
It’s not so much that the state laws are “friendly to big business” but that DE has the Chancery Court - a special court division that just handles business legal disputes. It speeds litigation up to have a set of laws relevant to business and a court system that uses those rules to adjudicate disputes.
Corporate blackmail.
wy69
Chancery Court in Delaware also rules on land disputes in the State and some recent calls by them defy logic IMHO.
Like any legal activity, appeals are expensive and unlikely to succeed , as Musk found out.
For this issue alone Delaware is a criminal state. Their behavior was no different from any communist takeover and seizure of private assets. They should be avoided at all costs. Do not do business with any business that incorporates there.
What they did was use a judge to tell shareholders that they do not control how assets, financial or otherwise, in a corporation are utilized. In Delaware, stock ownership means nothing.
Musk, as CEO, made a proposal that if he raised the value of Tesla to XXX, he would get a bonus. The board and stockholders agreed. He did that. Board went back to the stockholders and asked if the bonus should stand — they got a resounding “YES”.
Then, one stockholder with less than a dozen shares shopped a judge who came in and voided the bonus.
Tesla promptly told Delaware “F@#$ You” and left.
Any company doing business in Delaware or with any other company in Delaware is just asking to have their management overruled and assets seized. It is a communist state that thinks it OWNS everything.
Wanna guess what (just) ex-Pres represents that state?
They’ve demonstrated they are not trustworthy.
They can’t be trusted now either.
If I recall correctly Musk negotiated this deal before anyone predicted that Tesla would even survive much less become a huge success.
What will become of the blue states when their industries are gone and the only people left are welfare recipients and criminals?
I had heard that a court stopped the payment but I never heard the reason. I did also hear that if it had been paid it would have resulted in the largest federal income tax payment in American history.
Likely true. The previous largest federal income tax paid was by... Elon Musk a couple years ago paid $11 billion dollars in taxes, more than anyone in USA history. The man works hard for his money, and pays more taxes than anyone (despite what Pocahontas and other crazies say).
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