Delaware Corporate Overhaul Opposed by Pension Fund Coalition

A group of pension funds came out Friday against a proposed overhaul of Delaware corporate law, saying it would gut shareholder rights while giving powerful insiders carte blanche to loot public companies.

The public letter to Delaware Gov. Matt Meyer (D) was signed by nearly 50 union and municipal funds, including the New York City and Los Angeles retirement systems.

Meyer, who took office in January, is backing Senate Bill 21 after hearing from some corporate leaders that Delaware’s recent court crackdown on controlling stockholders including Elon Musk may drive them to relocate, a phenomenon dubbed “DExit.”

Musk, who moved ...