Press Release
States Compete for Corporate Dominance as Delaware Responds to Threats
CLAYMONT, Del. — Recent legislative changes in Texas, Oklahoma, and Nevada pose a potential challenge to Delaware’s long-standing status as the nation’s incorporation capital. As these states implement more business-friendly legislation aimed at attracting companies, Delaware is taking measures to protect its lucrative corporate tax base.
Texas has enacted laws limiting shareholder powers and providing enhanced legal protections for businesses, while Nevada is pushing for a dedicated business court and updating its business laws. Oklahoma’s legislature has sanctioned the creation of business courts in its two largest counties, aiming to position the state as the foremost business-friendly destination.
This shift comes amid high-profile relocations, including major companies such as Tesla and SpaceX moving to Texas. Elon Musk has highlighted these states as appealing alternatives, especially after challenges to shareholder rights in Delaware.
In response, Delaware Governor Matt Meyer is pushing back with new legislation dubbed the "Billionaire’s Bill," designed to limit shareholder access to records and increase protections for corporate leadership. Critics argue these changes undermine shareholder rights, yet experts suggest that many shareholders prioritize financial return over governance issues. As states vie for corporate entities, the landscape of business law in the U.S. continues to evolve.
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