Source: Fortune
Summary
Delaware, home to over 2.2 million businesses, faces a potential “DExit” as companies like Tesla and SpaceX leave due to concerns over corporate governance and court decisions. However, TransPerfect CEO Phil Shawe, who moved his company to Nevada, is working to reform Delaware’s courts, having experienced a costly and unfair process in 2014. Shawe has financed an anti-Delaware ad campaign, lobbied for changes, and argues that he is trying to help Delaware reform its courts, not kill it.
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The strategy enters a familiar phase.
Elon Musk’s departure from Delaware may be imminent, but Phil Shawe is still invested in the state’s future. Shawe’s experience with Delaware courts has been costly, but he is using his knowledge to push for reform. The state’s continued popularity among companies is a testament to its enduring appeal. The question is, can Delaware adapt to the changing needs of its corporate clients?
Delaware’s “billionaires’ bill” may have been upheld, but the battle for corporate governance is far from over.
