Tesla Corporate Shift to Texas Ruled Valid by Delaware Judge (1)

Tesla Inc.'s move to Texas after a Delaware judge voided Elon Musk’s record $56 billion pay package complied with the company’s charter and corporate law, the same judge said in a ruling made public Tuesday.

Chancellor Kathaleen St. Jude McCormick rejected a bid to invalidate the reincorporation, saying the case involved the same issues resolved last year in a separate lawsuit that sought to block Trade Desk Inc.'s move to Nevada. Both shareholder suits said the companies violated charter provisions requiring a two-thirds investor vote—Tesla’s shift to Texas got only 63% approval—for certain types of governance changes.

The brief decision ...