Delaware Senate Unanimously Passes Corporate Law Reform Bill SB 21 Amidst Competition from Texas Following Elon Musk's Tesla Move

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Updated Mar 13, 2025, 09:44 PM

Delaware's Senate has unanimously passed a corporate law reform bill, SB 21, aimed at reinforcing the state's position as a leading corporate legal home amidst competition from Texas. This legislative move comes a year after Elon Musk encouraged companies to relocate to Texas, following Tesla's own departure from Delaware. The bill, which faced little debate and no dissenting votes, is seen as a response to concerns that Delaware's corporate laws may not align with the interests of controlling shareholders, including Musk. Observers predict that discussions surrounding SB 21 will likely involve criticisms of Musk, even though the bill does not directly pertain to his situation. Experts warn that Delaware's corporate chartering business could suffer if it becomes entangled in broader cultural conflicts, emphasizing the need for the state to focus on maintaining its corporate legal framework without unnecessary political distractions.

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#Delaware #Senate #Texas #Elon Musk #Tesla #Musk

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Sources

reuters.com(2)law360.com natlawreview.com

Robert Anderson

@ProfRobAnderson

Delaware corporate law reform bill SB 21 unanimously passes the Delaware Senate. It is clear that the law the Chancery applies to supposedly controlling shareholders (including Musk) is inconsistent with the will of the legislature. https://t.co/K67ruwfFFk

Law360

@Law360

BREAKING: Divisive amendments to Delaware's general corporation law cleared the state Senate Thursday with multiple questions but little debate and without dissenting votes. https://t.co/eG18J9luvB

Robert Anderson

@ProfRobAnderson

I have said over and over, the last thing Delaware's chartering business needs is to further become a pawn in culture wars. Attacking Musk brings unhelpful political attention to the state's corporate law that it cannot withstand. They are doing this to themselves. https://t.co/elWK4oLjkm