Delaware, Inc agonises about Musk backlash as its lawyers seek changes

The drop just before the long Easter holiday weekend did not seem like a coincidence. On Thursday, March 28, a group of powerful Delaware lawyers put in motion a plan to make a series of changes to the state’s eminent corporate code, known as the Delaware General Corporation Law.

The lawyers are members of the Delaware state bar association that customarily makes such proposals to update the state’s corporate law. But this set of revisions had come hastily and was, according to the plan, to be quickly approved by the Delaware legislature in order to take effect by August 1.

It has not been an ordinary year in the First State. About two-thirds of American companies are incorporated in Delaware, attracted to the small, mid-Atlantic state by its sophisticated legal system. But a series of highly technical rulings in recent months have seemingly overturned long-standing legal provisions in both merger and stockholder agreements, leaving them open to challenges in the courts.

Source: Delaware, Inc agonises about Musk backlash as its lawyers seek changes