Musk-Delaware Feud Spurs New Texas Minority Shareholder Law (1)

The type of minority shareholder challenge that pushed Elon Musk and Tesla out of Delaware is now illegal in Texas.

“Business decisions are to be made by the elected officers and their shareholders, not by unelected judges,” Gov. Greg Abbott (R) said during a bill signing ceremony Wednesday.

Abbott’s penstroke to SB 29 comes a week after the Texas Senate gave it final approval on May 7. The law became effective immediately.

Abbott prioritized the bill as part of a broader business-friendly legislative bid to attract companies to Texas and threaten Delaware’s status as the dominant state for incorporation. ...