Delaware Corporate Law Reform Fueled by Musk Upheld (Correct)

Feb. 28, 2026, 5:32 AM UTC

The Delaware Supreme Court upheld the constitutionality of an overhaul of state law that governs most major US corporations and was fueled by Elon Musk, handing a win to company founders, insiders and private equity owners who sought less restrictive business rules.

In a ruling Friday, the court concluded that controversial changes to the law had complied with the state’s constitution and didn’t strip power from Delaware Chancery Court — the nation’s premier business-litigation venue — to grant relief if companies breach their fiduciary duty.

The changes represent “a legitimate exercise of the General Assembly’s authority to enact substantive ...

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