Delaware’s lawmakers recently passed Senate Bill 21 (SB 21) to address concerns about potential corporate relocation outside the state. The reform sets new rules for companies with controlling shareholders in an effort to strengthen Delaware’s position as a premium choice for incorporations. Investor advocates raised concerns that SB 21 could weaken minority shareholder protections while benefiting controlling shareholders like Meta CEO Mark Zuckerberg.
Gov. Matt Meyer supported SB 21, stating it ensures Delaware remains a top location for incorporation. The bill introduces retroactive provisions limiting legal cases under prior laws and sets clearer guidelines for conflict resolution in corporate transactions.
Critics labeled SB 21 a “billionaire’s bill,” arguing it undermines corporate oversight and weakens protections for minority stakeholders…