Re:Ask HN: Next best to incorporate other than Delaware?
by modeless on Saturday December 07, 2024 @02:00PM
(#42351931)
Delaware's large amount of court precedent is seen as an advantage because it reduces uncertainty in litigation. But lately some of that precedent seems to be pretty restrictive on companies. In particular the recent decision to overrule the clear expressed preferences of Telsa shareholders and award $345 million (over $17,000 per hour) to lawyers representing one shareholder with nine shares has people questioning whether Delaware's court precedent is really an advantage.
[ Parent
| on HN ]
Re:Ask HN: Next best to incorporate other than Delaware?
by D13Fd on Saturday December 07, 2024 @02:22PM
(#42352130)
It sounds like you are basing this on a single decision by a single judge facing a pretty unique situation.
Delaware still has the most certainty, by far. You are much better off there the vast majority of the time. Delaware has a court (the court of Chancery) that is specifically geared for rapid and thorough resolution of corporate disputes, with some of the absolute best and judges (the chancellor and vice chancellors) in the country.
If you want to screw around, try incorporating in another state (maybe even one with elected, political judges!) and see how that goes when a real dispute arises.
Re:Ask HN: Next best to incorporate other than Delaware?
by refulgentis on Saturday December 07, 2024 @02:18PM
(#42352085)
That stays general until it suddenly sharpens, which obfuscates that it's just the Tesla decision driving this idea.
It was interesting to me that it was considered a bedrock of corporate jurisprudence until then.
When faced with that contradiction, I first checked my premises...