"Delaware has long been considered one of the country's most business-friendly states. Nearly 2 million businesses call Delaware their legal home, including more than half of all publicly traded companies, according to the Delaware Secretary of State. However, a series of Delaware court rulings has made some companies question just how hospitable the state really is for corporations. 'Delaware's Chancery Court in recent years has been rife with unpredictable outcomes,' Grewal wrote."
"Tesla CEO Elon Musk sparked an exodus from the state last year, reincorporating both SpaceX and Tesla in Texas, after a Delaware court sided with minority shareholders to void his proposed $56 billion pay package. Now based in Texas, Tesla shareholders approved a $1 trillion pay package, tied to some lofty benchmarks, earlier this month. Texas law makes it more difficult for shareholders to file lawsuits against a company and its directors."
Coinbase filed paperwork with the Securities and Exchange Commission to leave Delaware and reincorporate in Texas. Coinbase cited Delaware court unpredictability and described Texas as an increasingly attractive hub for innovative companies. Delaware hosts nearly 2 million businesses, including more than half of all publicly traded companies. Recent Delaware Chancery Court rulings have prompted concerns about hospitability to corporations. Elon Musk reincorporated SpaceX and Tesla in Texas after a Delaware court voided his proposed $56 billion pay package. Tesla shareholders later approved a $1 trillion pay package in Texas. Other firms, including Andreessen Horowitz, Roblox, Dropbox, and Pershing Square, have also left Delaware.
Read at Business Insider
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