Posted on 03/10/2026 8:29:26 PM PDT by SeekAndFind
You may have read about numerous prominent large corporations headed for the exits in blue states like California and heading for more welcoming climates in business-friendly states like Texas and Florida.
Why? They’re sick of getting constantly hammered with taxes, regulations, and hostility from state governments.
Now it’s the Exxon Mobil Corporation, which announced Tuesday that 144 years after it incorporated in the state, its Board of Directors unanimously recommended that shareholders change the company’s legal domicile from New Jersey to Texas.
They passed over former President Joe Biden’s home state:
This is a big one. ExxonMobil to move its state of incorporation from New Jersey to Texas. At one time Delaware would have been the go-to choice for a company like this, but Delaware is the new New Jersey. The go-to choice is now Texas. 1/
pic.twitter.com/yBcfVksQ4G— Robert Anderson (@ProfRobAnderson) March 10, 2026
On their webpage, the oil giant complimented Texas for embracing business. The company had already moved its headquarters to Irving, Texas, in 1989, but this latest move would change its legal domicile, the state or jurisdiction where it’s legally incorporated.
"Over the past several years, Texas has made a noticeable effort to embrace the business community. In doing so, it has created a policy and regulatory environment that can allow the company to maximize shareholder value,” said Darren Woods, ExxonMobil chairman and chief executive officer. "Aligning our legal home with our operating home, in a state that understands our business and has a stake in the company’s success, is important.”
How’s that war on fossil fuels going for you, blue staters?
MORE: Texas Gains Another Big Employer at California's Expense
Chevron Fires Off Blistering Letter to Newsom Warning Proposed Climate Policy Will Decimate CA
Life will just be easier in Gov. Greg Abbott’s Lone Star State, Exxon wrote:
In making its recommendation, the Board considered Texas’ legal and regulatory environment, including its modernized business statutes and the Texas Business Court, which is designed to resolve complex disputes efficiently. When corporate decisions are challenged, Texas courts are required to apply clear, statute based standards, which support sound decision-making.
Robert Anderson, Professor of Law, Corporate and M&A (mergers and acquisitions), at the University of Arkansas, and whose tweet appeared earlier in the story, had some other salient observations:
This move is significant for many reasons. First, it is a validation that Texas is *pulling* companies in, not just that Delaware is *pushing* them out. Second, it is a validation of Texas's strategy of unifying corporate law and physical presence in a business-friendly state. 2/— Robert Anderson (@ProfRobAnderson) March 10, 2026
He said that Delaware, once a top choice for companies, has lost the plot:
This is a good move for ExxonMobil, a good move for Texas, and a great move for corporate law. For many decades, a company like this would've *automatically* gone to Delaware. Plaintiffs' lawyers and their judicial deputies in Delaware ruined their corporate franchise.— Robert Anderson (@ProfRobAnderson) March 10, 2026
More Winning: Drill, Baby, Drill Leads to Refine, Baby, Refine With New Texas Facility
It seems that Exxon Mobil simply got tired of being harassed and unappreciated:
New Jersey officials sued Exxon, Chevron and other fossil-fuel companies in 2022, alleging they contributed to climate change and forced the state to spend billions cleaning up after major natural disasters such as Superstorm Sandy and Hurricane Ida. The suit was dismissed last year.
Exxon has also faced years of high-profile clashes with activist investors and climate-focused shareholder campaigns.
Shareholders will vote on the proposal at their Annual Meeting in April.
So-called “progressive” policies in all too many states have been utter failures, and the Left’s obsession with climate change has caused little progress but untold billions in headaches.
Sorry, Bruce, but Exxon evidently has a “Hungry Heart.”
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Interesting.
What legal shifts have been made in Texas that are now better than Del.?
Whatever red state Exxon runs to is going to be saddled with thousands of blue state voters that have re-location packages in their hands.
I certainly would not want Exxon coming to my state. These voters did not “flee” blue state insanity. They’re going to bring insanity to a red state near you.
All of these corporations are really going to have an impact on future elections in a terrible way.
The locusts are swarming.
Totally missed it. They chose Texas.
Texas is going to go blue with all of these corporations and their relocation packages.
“What legal shifts have been made in Texas that are now better than Del.?”
Misleading article. Not moving out of Delaware.
They have been headquarters in Texas for decades.
I asked Google Gemini, their Large Language AI Chat model, and here is their response:
Texas has recently implemented several “legal shifts” specifically designed to challenge Delaware’s long-standing dominance. These changes, primarily enacted through House Bill 19 and Senate Bill 29 (effective late 2024 and 2025), focus on providing more protection for management and reducing the unpredictability of shareholder litigation.
Here are the specific areas where Texas is positioning itself as “better” or more specialized than Delaware:
1. The New Texas Business Court (Opened Sept 2024)Texas effectively built its own version of Delaware’s famous Court of Chancery.
Specialized Expertise: Like Delaware, Texas now has dedicated judges who exclusively hear complex business disputes (contract claims over $5 million or internal corporate affairs).Speed: In its first year (FY 2025), 85% of cases in the Texas Business Court were resolved within 180 days, a pace designed to rival or exceed Delaware’s efficiency.
Jury Trial Waivers: Texas now explicitly allows corporations to include jury trial waivers for “internal entity claims” in their governing documents. This was a major “moat” for Delaware; Texas has now neutralized it by allowing companies to opt for bench trials before specialized business judges.
2. Management-Friendly Statutory “Shields”
Texas has codified certain rules that Delaware leaves to “judge-made” common law, which many executives feel provides more certainty:
Codified Business Judgment Rule: SB 29 (May 2025) codified the Business Judgment Rule, creating a statutory presumption that directors act in good faith. Unlike Delaware, Texas does not recognize “enhanced scrutiny” for certain transactions, making it harder for shareholders to challenge board decisions.
Derivative Suit Thresholds: Texas now allows public companies to bar derivative lawsuits (suits brought by shareholders on behalf of the company) if the shareholder owns less than 3% of shares. Delaware has no such flat percentage threshold, making it easier for “nuisance” litigants to sue there.
3. Pre-Approval of “Special Committees”
Texas introduced a “novel” mechanism that Delaware does not have:
Independence Petitions: Boards can now petition a Texas court for a ruling on the independence of a special committee before they even begin evaluating a transaction. This allows companies to “bulletproof” their process against later shareholder claims that the committee was biased.
4. Significant Tax and Cost Advantages.
While not strictly a “legal shift” in the judicial sense, the financial legal framework is a primary driver for what some call “DExit”:
Zero Income Tax: Texas has no corporate or personal income tax. While Delaware also has no state income tax for companies that don’t do business in the state, its Franchise Tax can be massive for large corporations (up to $250,000 annually).
Lower Filing Fees: Ongoing compliance and filing fees in Texas are generally lower and more straightforward for mid-market companies.
ExxonMobil’s corporate presence in New Jersey was practically non-existent. Heck — I didn’t even know they were legally domiciled in NJ until I read this article.
Thanks.
AI seems to know a lot about the near present.
The future? See a crystal Ball owner...
I keep hearing about liberals taking over this state and that state. If they can take over all those states they are the majority and should take over.
But they aren’t the majority. Stop making them more than they are.
They’ve been in Irving for a long time.
Some of us are old enough to remember when Colorado wasn’t insane.
Some look at Georgia right now as it slips away.
Some even remember way way back when, Reagan was governor of California.
Virginia too, was not insane all too long ago.
Oh who am I kidding. Virginia, Colorado, and California. I’m making it all up. And Georgia will be red forever. Forever!
SMH
“
What legal shifts have been made in Texas that are now better than Del?
More so shifts in Delaware....Judicial activism
Companies are leaving Delaware (a trend dubbed “DExit”) primarily due to recent, unfavorable Delaware Chancery Court rulings—such as overturning high-profile executive pay packages—which have created legal uncertainty and increased liability risks for directors. Businesses are migrating to states like Texas, Nevada, and Florida, seeking more predictable, pro-management legal environments, lower franchise taxes, and reduced litigation risks.
Key reasons for the exodus include:
Judicial Rulings & Liability Risk: High-profile cases, including the voiding of Elon Musk’s $56 billion Tesla compensation package, have caused concern that Delaware courts are no longer as protective of corporate management. Directors fear increased exposure to lawsuits.
Alternative Jurisdictions: States like Nevada and Texas offer more “business-friendly” environments with stricter, statute-focused laws that can limit shareholder litigation.
Costs & Tax Structure: Some companies are seeking to avoid high Delaware franchise taxes and annual fees.
Shift in Corporate Governance: There is a perception that Delaware law is becoming too responsive to shareholder activism rather than board authority.
“Texas is going to go blue with all of these corporations and their relocation packages.”
How do you think New Jersey went blue, it once was a reliably red state. Corporations and people moving in from New York in the 1980’s turned the state purple and bluer and bluer. Once you get into some of the more rural areas that never got the huge influx of outsiders, it is still extremely conservative.
But remember, you are NOT being replaced.
So-called “progressive” policies in all too many states have been utter failures” The only thing that has “progressed” is the Left’s insanity.
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