Firms flee Delaware in growing ‘Dexit’ trend

Dexit wave: Musk at SpaceX headquarters in Hawthorne, California. Delaware law typically requires a company that strikes a deal with a controlling shareholder to prove the arrangement meets a strict standard showing the price and process are fair. — AFP

NEW YORK: In the coming weeks, investors in nine public companies worth at least US$1bil each will vote on proposals to ditch Delaware as their place of incorporation, potentially denting the state’s longtime reputation as Corporate America’s capital, Reuters has found.

Five companies with a stock market value of at least US$1bil have moved their legal home out of Delaware since last year, in what some have nicknamed “Dexit”.