Dell’s Texas Move Opposed by Proxy Firm Over Litigation Limits

Proxy advisory firm Institutional Shareholder Services Inc. opposed Dell Technologies Inc.‘s plans to move to Texas as holding company leaders accountable would get much harder under the state’s shareholder restrictions.

An important accountability lever would vanish if Dell follows through on plans to set a 3% stock ownership threshold for certain shareholder lawsuits upon its move out of Delaware, ISS said in a June 11 report. Litigation is a key avenue for investors to raise issues at companies like Dell, where insiders hold outsize voting power and can easily strike down shareholder proposals, the report said.

“The inherently difficult ...