Economy Corporations leaving Delaware at alarming rate

[White Whale]

As Musk and Ackman Snub Delaware, Governor Looks Hard at Court

For more than a century Delaware has boasted the premier US business court, as legal home to most Fortune 500 companies and the nation’s biggest corporate battles.

news.bloomberglaw.com

As Musk and Ackman Snub Delaware, Governor Looks Hard at Court

For more than a century Delaware has boasted the premier US business court, as legal home to most Fortune 500 companies and the nation’s biggest corporate battles.

Now that status is increasingly being challenged after Elon Musk moved his companies’ incorporation from the state and as Meta Platforms Inc., Dropbox Inc. and Bill Ackman’s Pershing Square Capital Management do or consider doing the same. Delaware’s new governor, Matt Meyer, says he is stepping in.

Meyer, a Democrat, said in an interview Monday that he is weighing changes to the way business disputes are handled in Delaware to improve the system. He said the possible changes are based on feedback from executives, corporate lawyers and people suing in the state’s famed Chancery Court.

“My role as governor is to look at the system, make sure the corporate law is fair, make sure it’s predictable, make sure it’s clear and consistent, and make sure we’re making whatever changes are necessary” to improve it, Meyer said. “We need to win the future.”

Delaware Judge Went After Elon Musk; Now Delaware Losing Corporations at Alarming Rate

hotair.com

Delaware is losing big corporations because of a leftwing judge. The govonor is getting involved to try and win them back.

 

[wlu.29]

Meh

 

[Long Dark Blues]

Delaware dissolves, Maryland absorbs the rest of the peninsula. D.C. becomes a state.

Boom.

 

[Source]

Poor Musk couldn’t get his 55 billion pay package approved by a judge.

 

[Rob Battisti]

Yeah if I was a Delawarean I’d be pissed. But then again, if I was a Delawarean, I’d probably be a liberal idiot.

 

[Dalarna3]

Aren't they incorporated there because they don't pay taxes? How much is this going to hurt government revenues?

 

[IDGETKTFO]

Good, hopefully Trump makes Delaware pay their fair share in Taxes. Ridiculous they don't have to pay sales tax, and their min wage is more then PA. Why do you Liberal Lefty clowns think PA voted Trump? Our Econmy is shit, and the People voted.
Incase you are an idiot Liberal Lefty that doesn't want to use your Low IQ brain, Delaware doesnt pay sales tax, and Min wage is $15/hr. PA pays 6% sales tax, and Min wage is $7.25/hr.

 

[LeonardoBjj]

Yeah if I was a Delawarean I’d be pissed. But then again, if I was a Delawarean, I’d probably be a liberal idiot.

- Leftist.

 

[Losfer Words]

 

[Rational Poster]

Good, hopefully Trump makes Delaware pay their fair share in Taxes. Ridiculous they don't have to pay sales tax, and their min wage is more then PA. Why do you Liberal Lefty clowns think PA voted Trump? Our Econmy is shit, and the People voted.
Incase you are an idiot Liberal Lefty that doesn't want to use your Low IQ brain, Delaware doesnt pay sales tax, and Min wage is $15/hr. PA pays 6% sales tax, and Min wage is $7.25/hr.

Lmao

 

[badascan]

Why are these companies in Delaware? In the interest of adding something to my question, the ships in my companies fleet are registered in Delaware, it's painted in two foot(+/-) letters on their stern... Why would gigantic ships working on the Great Lakes be registered in a landlocked state? *Or at least a deep sea state...

*Edit

 

[Spam On Rye]

As long as Grottos stays I don't care.

 

[Rational Poster]

Why are these companies in Delaware? In the interest of adding something to my question, the ships in my companies fleet are registered in Delaware, it's painted in two foot(+/-) letters on their stern... Why would gigantic ships working on the Great Lakes be registered in a landlocked state? *Or at least a deep sea state...

*Edit

It's a tax haven with courts that specialize in corporate disputes.

Elon is just mad because they ordered paying himself $54B was a bit ridiculous.

 

[panamaican]

Aren't they incorporated there because they don't pay taxes? How much is this going to hurt government revenues?

They don't pay high taxes but they have to maintain a presence there to be incorporated. On the legal side, a lot of lawyers serve as the legal interface that lets those companies operate there. Losing those companies probably has some trickle down effect based on the ancillary services provided to out of state corporations. But I couldn't put a number or a percentage on it.

 

[Deleted member 592570]

 

[Scerpi]

Why are these companies in Delaware? In the interest of adding something to my question, the ships in my companies fleet are registered in Delaware, it's painted in two foot(+/-) letters on their stern... Why would gigantic ships working on the Great Lakes be registered in a landlocked state? *Or at least a deep sea state...

*Edit

Corporate Tax Advantages?

And a Democrat Judge seems to have pushed the first domino? And the DE Governer is panicking..

Delaware Faces Exodus of Tech Companies​

Delaware faces exodus of tech companies

Meta and Dropbox are said following Elon Musk by moving its incorporation out the state.

www.newsweek.com

Delaware has long been considered a business-friendly state due to its corporate tax advantages, and is home to multiple large companies. However, backlash against the First State has intensified after Delaware Judge Kathaleen McCormick ruled that Tesla CEO Elon Musk's record-breaking $56 billion compensation package was excessive.

 

[Mr Holmes]

 

[Beechwood]

You knew that was going to happen after the way Elon Musk was treated by Delaware's courts. The judge acted quite dishonest from what I've read. I didn't read OP's article but I saw in another write up that Delaware is now losing billions from companies looking to incorporate in Texas and Nevada where the court system is less biased, more honest.

After the way courts in blue run cities and states have acted against conservatives the past few years, I would avoid doing business those areas of the country if possible.

i have wondered if Delaware's biased courts is a big motivator for why Elon Musk worked with Trump and conservatives, looking to get them elected to office in the last election. I wouldn't be surprised if it was.

 

[fedorthegoat777]

Elon couldn't get his own salary that he was entitled to. 55 Billion. Of course people are leaving.

 

[Squarechoke]

Not a good situation but the funny part was seeing Spencer Davis' tweet, as it just made him look like he's never read a history book. Too many people are so bad at communicating that they don't think they can make a point without exaggerating.