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The way they are going, Delaware is losing it's attractiveness to businesses

The Big Loser in Tesla’s Shareholder Vote Is Delaware

Shareholders back Elon Musk’s move to reincorporate in Texas, which has wooed big businessTesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on th

The Big Loser in Tesla’s Shareholder Vote Is Delaware

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{"i18n":{"language":"en_US"},"data":{"magic":2,"id":317734787977512,"tweetId":"317734787977512","gmtCreate":1718611014491,"gmtModify":1718611018158,"author":{"id":3567295126071659,"idStr":"3567295126071659","authorId":3567295126071659,"authorIdStr":"3567295126071659","name":"RonnieSG","avatar":"https://static.tigerbbs.com/20c3815bb0969cd4ea7a26f56e53df31","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":7,"crmLevelSwitch":1,"individualDisplayBadges":[],"fanSize":68,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body>The way they are going, Delaware is losing it's attractiveness to businesses\n </body></html>","htmlText":"<html><head></head><body>The way they are going, Delaware is losing it's attractiveness to businesses\n </body></html>","text":"The way they are going, Delaware is losing it's attractiveness to businesses","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/317734787977512","repostId":2443855929,"repostType":2,"repost":{"id":"2443855929","kind":"highlight","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1718590800,"share":"https://www.laohu8.com/m/news/2443855929?lang=&edition=full","pubTime":"2024-06-17 10:20","market":"us","language":"en","title":"The Big Loser in Tesla’s Shareholder Vote Is Delaware","url":"https://stock-news.laohu8.com/highlight/detail?id=2443855929","media":"Dow Jones","summary":"Shareholders back Elon Musk’s move to reincorporate in Texas, which has wooed big businessTesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on th","content":"<html><head></head><body>Shareholders back Elon Musk’s move to reincorporate in Texas, which has wooed big business<img src=\"https://community-static.tradeup.com/news/fba3eaa4560a6091a37f12c5d6fee416\" alt=\"Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. \" title=\"Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. \" tg-width=\"700\" tg-height=\"522\"/>Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. Tesla’s reincorporation in Texas is about much more than saving the electric-car juggernaut $250,000 a year in state fees. It is an attempt by Elon Musk to loosen Delaware’s grip on American corporations. About two-thirds of S&amp;P 500 companies—regardless of where they are actually based—are incorporated in Delaware, largely because the tiny state has specialized courts that handle business matters and stacks of legal precedents for addressing such disputes.Musk asked shareholders to approve the move after the Tesla chief executive lost a case in a Delaware court over his pay package, recently valued at about $46 billion. Shareholders on Thursday re-approved the package as well as the plan to reincorporate in Texas, where Tesla has its headquarters and some of its manufacturing facilities. The company filed paperwork to implement the change the same day.By voting to leave the First State, shareholders could be ratifying the view among some that Delaware’s shareholder protections have gone too far, some legal experts said. An alternative, however, is that Musk is simply so important that investors are willing to take a chance on Texas.“I do think that Elon Musk is this singular figure,” said Renee Zaytsev, a corporate- and securities-law attorney at Boies Schiller Flexner. “Is Tesla what other companies are looking to, to decide where they’re going to incorporate or how they’re going to run their governance? Probably not.”Texas officials have been wooing businesses with promises of lower taxes and, more recently, by setting up the state’s own specialized business court system. A startup is developing plans to create a new Texas Stock Exchange that its backers say will be more CEO-friendly than the incumbents in New York.“It’s not just the laws, it’s how the judges are going to implement them,” said Anat Alon-Beck, a Case Western Reserve University law professor, who has a paper scheduled for this fall on risks to Delaware from other state incorporation practices.It isn’t clear who will serve as judges in the new Texas business courts, and as appointees with two-year terms, they may be more easily swayed by political considerations, Alon-Beck said. “Uncertainty is not good for business.”<img src=\"https://community-static.tradeup.com/news/404e731204c51acfe56ce5eacc55887e\" alt=\"Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.\" title=\"Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.\" tg-width=\"700\" tg-height=\"466\"/>Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.Tesla isn’t the first corporate giant to make the move out of Delaware. Microsoft, which first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 when it went public, then moved back to Washington in 1993 after the state revamped its business laws to indemnify officers. Tripadvisor has been fighting in court with shareholders to move its incorporation to Nevada from Delaware. Texas was the legal home of four S&amp;P 500 companies before Tesla’s vote, Southwest Airlines, CenterPoint Energy, Atmos Energy and Camden Property Trust—on par with Missouri and California, data from Standard &amp; Poor’s show.  Other big public companies incorporated outside Delaware include PepsiCo (North Carolina), Abbott Laboratories (Illinois), International Business Machines (New York) and Target (Minnesota).Most of the explicit legal differences between Delaware and Texas are minor, corporate attorneys said, echoing Tesla’s argument that the states’ laws are substantially equivalent.<img src=\"https://community-static.tradeup.com/news/9a57426f28049a16d72eabc6b4d5cbe9\" alt=\"Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.\" title=\"Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.\" tg-width=\"700\" tg-height=\"394\"/>Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.“There are minor differences ,” said Stephen Bainbridge, a law professor at the University of California, Los Angeles. “Most of those are technical, and likely to come into play in relatively few circumstances.” Mergers, for example, can require a higher shareholder vote in Texas, while it is harder for a shareholder to inspect a company’s books there, he said.One of the biggest advantages Delaware has: extensive precedents on nearly every facet of corporate law, giving boards and attorneys a better sense of likely outcomes and how to make their cases. “It’s much harder for anybody to predict how Texas courts are going to rule,” Bainbridge said.In making its case for redomiciling in Texas, Tesla dismissed the idea that the newly established business courts in Texas were riskier because they were new. “Doing new things is part of Tesla’s DNA, and how it has become one of the most valuable companies in the world,” Tesla said in its proxy filing.Tesla also said it would also save about $250,000 a year in Delaware franchise-tax payments. One thing that might not change, though, is the legal fight over Musk’s pay package. That dispute will likely stay in the hands of a judge in Delaware Chancery Court.</body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The Big Loser in Tesla’s Shareholder Vote Is Delaware</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe Big Loser in Tesla’s Shareholder Vote Is Delaware\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\nDow Jones \n2024-06-17 10:20\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body>Shareholders back Elon Musk’s move to reincorporate in Texas, which has wooed big business<img src=\"https://community-static.tradeup.com/news/fba3eaa4560a6091a37f12c5d6fee416\" alt=\"Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. \" title=\"Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. \" tg-width=\"700\" tg-height=\"522\"/>Tesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. Tesla’s reincorporation in Texas is about much more than saving the electric-car juggernaut $250,000 a year in state fees. It is an attempt by Elon Musk to loosen Delaware’s grip on American corporations. About two-thirds of S&amp;P 500 companies—regardless of where they are actually based—are incorporated in Delaware, largely because the tiny state has specialized courts that handle business matters and stacks of legal precedents for addressing such disputes.Musk asked shareholders to approve the move after the Tesla chief executive lost a case in a Delaware court over his pay package, recently valued at about $46 billion. Shareholders on Thursday re-approved the package as well as the plan to reincorporate in Texas, where Tesla has its headquarters and some of its manufacturing facilities. The company filed paperwork to implement the change the same day.By voting to leave the First State, shareholders could be ratifying the view among some that Delaware’s shareholder protections have gone too far, some legal experts said. An alternative, however, is that Musk is simply so important that investors are willing to take a chance on Texas.“I do think that Elon Musk is this singular figure,” said Renee Zaytsev, a corporate- and securities-law attorney at Boies Schiller Flexner. “Is Tesla what other companies are looking to, to decide where they’re going to incorporate or how they’re going to run their governance? Probably not.”Texas officials have been wooing businesses with promises of lower taxes and, more recently, by setting up the state’s own specialized business court system. A startup is developing plans to create a new Texas Stock Exchange that its backers say will be more CEO-friendly than the incumbents in New York.“It’s not just the laws, it’s how the judges are going to implement them,” said Anat Alon-Beck, a Case Western Reserve University law professor, who has a paper scheduled for this fall on risks to Delaware from other state incorporation practices.It isn’t clear who will serve as judges in the new Texas business courts, and as appointees with two-year terms, they may be more easily swayed by political considerations, Alon-Beck said. “Uncertainty is not good for business.”<img src=\"https://community-static.tradeup.com/news/404e731204c51acfe56ce5eacc55887e\" alt=\"Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.\" title=\"Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.\" tg-width=\"700\" tg-height=\"466\"/>Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.Tesla isn’t the first corporate giant to make the move out of Delaware. Microsoft, which first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 when it went public, then moved back to Washington in 1993 after the state revamped its business laws to indemnify officers. Tripadvisor has been fighting in court with shareholders to move its incorporation to Nevada from Delaware. Texas was the legal home of four S&amp;P 500 companies before Tesla’s vote, Southwest Airlines, CenterPoint Energy, Atmos Energy and Camden Property Trust—on par with Missouri and California, data from Standard &amp; Poor’s show.  Other big public companies incorporated outside Delaware include PepsiCo (North Carolina), Abbott Laboratories (Illinois), International Business Machines (New York) and Target (Minnesota).Most of the explicit legal differences between Delaware and Texas are minor, corporate attorneys said, echoing Tesla’s argument that the states’ laws are substantially equivalent.<img src=\"https://community-static.tradeup.com/news/9a57426f28049a16d72eabc6b4d5cbe9\" alt=\"Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.\" title=\"Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.\" tg-width=\"700\" tg-height=\"394\"/>Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.“There are minor differences ,” said Stephen Bainbridge, a law professor at the University of California, Los Angeles. “Most of those are technical, and likely to come into play in relatively few circumstances.” Mergers, for example, can require a higher shareholder vote in Texas, while it is harder for a shareholder to inspect a company’s books there, he said.One of the biggest advantages Delaware has: extensive precedents on nearly every facet of corporate law, giving boards and attorneys a better sense of likely outcomes and how to make their cases. “It’s much harder for anybody to predict how Texas courts are going to rule,” Bainbridge said.In making its case for redomiciling in Texas, Tesla dismissed the idea that the newly established business courts in Texas were riskier because they were new. “Doing new things is part of Tesla’s DNA, and how it has become one of the most valuable companies in the world,” Tesla said in its proxy filing.Tesla also said it would also save about $250,000 a year in Delaware franchise-tax payments. One thing that might not change, though, is the legal fight over Musk’s pay package. That dispute will likely stay in the hands of a judge in Delaware Chancery Court.</body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4588":"碎股","LU1548497426.USD":"安联环球人工智能AT Acc","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","BK4574":"无人驾驶","BK4551":"寇图资本持仓","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","TSLL":"Direxion Daily TSLA Bull 2X Shares","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","BK4581":"高盛持仓","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","BK4099":"汽车制造商","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","BK4511":"特斯拉概念","TSLA":"特斯拉","BK4548":"巴美列捷福持仓","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0823411888.USD":"法巴消费创新基金 Cap","LU1551013342.USD":"Allianz Income and Growth Cl AMg2 DIS USD","LU0082616367.USD":"摩根大通美国科技A（dist）","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4592":"伊斯兰概念","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU2063271972.USD":"富兰克林创新领域基金","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4555":"新能源车","LU0823414478.USD":"法巴经典能源转换基金","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2443855929","content_text":"Shareholders back Elon Musk’s move to reincorporate in Texas, which has wooed big businessTesla shareholders, in approving Elon Musk’s plan to reincorporate in Texas, may share their CEO’s views on the Delaware business court—or they may simply be willing to follow his lead. Tesla’s reincorporation in Texas is about much more than saving the electric-car juggernaut $250,000 a year in state fees. It is an attempt by Elon Musk to loosen Delaware’s grip on American corporations. About two-thirds of S&P 500 companies—regardless of where they are actually based—are incorporated in Delaware, largely because the tiny state has specialized courts that handle business matters and stacks of legal precedents for addressing such disputes.Musk asked shareholders to approve the move after the Tesla chief executive lost a case in a Delaware court over his pay package, recently valued at about $46 billion. Shareholders on Thursday re-approved the package as well as the plan to reincorporate in Texas, where Tesla has its headquarters and some of its manufacturing facilities. The company filed paperwork to implement the change the same day.By voting to leave the First State, shareholders could be ratifying the view among some that Delaware’s shareholder protections have gone too far, some legal experts said. An alternative, however, is that Musk is simply so important that investors are willing to take a chance on Texas.“I do think that Elon Musk is this singular figure,” said Renee Zaytsev, a corporate- and securities-law attorney at Boies Schiller Flexner. “Is Tesla what other companies are looking to, to decide where they’re going to incorporate or how they’re going to run their governance? Probably not.”Texas officials have been wooing businesses with promises of lower taxes and, more recently, by setting up the state’s own specialized business court system. A startup is developing plans to create a new Texas Stock Exchange that its backers say will be more CEO-friendly than the incumbents in New York.“It’s not just the laws, it’s how the judges are going to implement them,” said Anat Alon-Beck, a Case Western Reserve University law professor, who has a paper scheduled for this fall on risks to Delaware from other state incorporation practices.It isn’t clear who will serve as judges in the new Texas business courts, and as appointees with two-year terms, they may be more easily swayed by political considerations, Alon-Beck said. “Uncertainty is not good for business.”Tesla CEO Elon Musk, outside the courthouse in Wilmington, Del., in 2021, during a trial stemming from Tesla’s acquisition of solar-power provider SolarCity.Tesla isn’t the first corporate giant to make the move out of Delaware. Microsoft, which first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 when it went public, then moved back to Washington in 1993 after the state revamped its business laws to indemnify officers. Tripadvisor has been fighting in court with shareholders to move its incorporation to Nevada from Delaware. Texas was the legal home of four S&P 500 companies before Tesla’s vote, Southwest Airlines, CenterPoint Energy, Atmos Energy and Camden Property Trust—on par with Missouri and California, data from Standard & Poor’s show.  Other big public companies incorporated outside Delaware include PepsiCo (North Carolina), Abbott Laboratories (Illinois), International Business Machines (New York) and Target (Minnesota).Most of the explicit legal differences between Delaware and Texas are minor, corporate attorneys said, echoing Tesla’s argument that the states’ laws are substantially equivalent.Microsoft first incorporated in Washington state in 1981, reincorporated in Delaware in 1986 after going public, then moved back to Washington in 1993 after the state revamped its business laws.“There are minor differences ,” said Stephen Bainbridge, a law professor at the University of California, Los Angeles. “Most of those are technical, and likely to come into play in relatively few circumstances.” Mergers, for example, can require a higher shareholder vote in Texas, while it is harder for a shareholder to inspect a company’s books there, he said.One of the biggest advantages Delaware has: extensive precedents on nearly every facet of corporate law, giving boards and attorneys a better sense of likely outcomes and how to make their cases. “It’s much harder for anybody to predict how Texas courts are going to rule,” Bainbridge said.In making its case for redomiciling in Texas, Tesla dismissed the idea that the newly established business courts in Texas were riskier because they were new. “Doing new things is part of Tesla’s DNA, and how it has become one of the most valuable companies in the world,” Tesla said in its proxy filing.Tesla also said it would also save about $250,000 a year in Delaware franchise-tax payments. One thing that might not change, though, is the legal fight over Musk’s pay package. That dispute will likely stay in the hands of a judge in Delaware Chancery Court.","news_type":1},"isVote":1,"tweetType":1,"viewCount":60,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":65,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}