It started with judges in the state arbitrarily denying Elon Musk of his contractually bound performance bonus at Tesla. Remember the left applauding that judges decision?
Now companies are abandoning their Delaware incorporation so the Gov has decided enough is enough and is promising "change". NY is next. The reason why so many corporations are incorporated in Delaware have to do with the corporate raiders of the 80s. Corporate raiders used to come in and say "we are buying your company for $10/share for the first 51% of sellers. Thereafter, we will pay $5 per share". If people wanted to sell the company or not, they had to in order to protect their portfolio. Delaware made it so you could not separate shares when you bought a company. You had to pay the same amount for every seller. So companies moved their incorporation to DE as protection.
Now companies are abandoning their Delaware incorporation so the Gov has decided enough is enough and is promising "change". NY is next. The reason why so many corporations are incorporated in Delaware have to do with the corporate raiders of the 80s. Corporate raiders used to come in and say "we are buying your company for $10/share for the first 51% of sellers. Thereafter, we will pay $5 per share". If people wanted to sell the company or not, they had to in order to protect their portfolio. Delaware made it so you could not separate shares when you bought a company. You had to pay the same amount for every seller. So companies moved their incorporation to DE as protection.
