Delaware enacted a corporate law overhaul to prevent companies from following Elon Musk’s example and leaving the state, which relies on incorporation fees to pad its budget.
The state’s governor, Matt Meyer, signed the bipartisan bill S.B.21 Tuesday, the final step in a fast-tracked legislative response to a series of rulings out of Delaware’s Court of Chancery.
Bloomberg Law Senior Correspondent Jennifer Kay asked CM Law’s Partner & Bankruptcy Practice Chair Richard Grant how the new law will impact businesses at large for her article, “Corporate Capital Delaware’s Business Law Overhaul Explained.”
He says that because the new law was developed so quickly outside Delaware’s normal process for drafting new corporate law amendments, lawmakers may have to draft more legislation to respond to unforeseen consequences, like a possible “DExit” of companies leaving the state.
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