Foley & Lardner LLP partners Louis Lehot and Brian Wheeler published the Westlaw Today article, “Delaware state assembly moves to stop DExit in its tracks,” exploring a recent bill filed in Delaware intended to address recent corporate exits from the state.
The authors offer background on Delaware’s history as a prevalent jurisdiction for business incorporation and assess the proposed legislation, which aims, among other changes, to ensure that controlling stockholders or control groups will not be liable for monetary damages in the case of a breach of the duty of care and impacts shareholder ability to file suit through limiting access to internal records.
“Time will tell whether the legislation will pass, and whether it will ultimately stop the fire that is driving companies to DExit, or exit Delaware, for what might look like greener pastures in Texas and Nevada,” the authors conclude. “This is one to watch closely.”