New York Times (August 16)
“States have been competing for corporate charters since the late 1800s. The incentives are high: About 30 percent of Delaware’s revenue in 2024 came from franchise taxes.” But Texas has taken things to a new low, with recent legislation creating “a wild west for corporate governance” by helping corporations dodge proxy access. “Corporations incorporated or headquartered in Texas can restrict shareholder proposals to only their largest shareholders… owning at least $1 million in stock or 3 percent of the company.” Texas is also trying to muffle proxy advisors with measures that effectively block them “from siding against management on any shareholder proposal.”
Tags: Corporate charters, Corporate governance, Corporations, Delaware, Legislation, Muffle, Proxy access, Proxy advisors, Restrict, Shareholder proposals, Texas, Wild west
