The consequences of a single questionable decision by a single judge is essentially going to ruin Delaware’s economy.
I knew that a judge had blocked Elon Musk’s pay package from Tesla even though the share holders voted on it beforehand. It was blocked based on a law firm finding a shareholder with nine shares (out of 3.22 billion shares outstanding) who agreed to file lawsuit.
I knew that Elon was moving all his corporations out of Delaware as a result.
What I didn’t realize was the because he didn’t appeal the decision, the case is now established precedent, showing that vote by corporate shareholders can easily be overturned by a judge and now basically ALL the corporations are leaving Delaware.
This means Delaware is losing at least a third of its entire economy and potentially much more. It’s going to radically affect Delaware.
It’s a fascinating story and the Lotus Eaters lay it out in under twenty minutes.
It’s worth the watch to anyone who likes to keep informed. I guarantee there are going to be ripples from this decision beyond all the corporations pulling out of Delaware. That’s just the first wave.
By the way, I hate this preview image. When the facts are on your side, stuff like that just demeans your argument.
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