{"id":58693,"date":"2025-03-09T12:37:34","date_gmt":"2025-03-09T16:37:34","guid":{"rendered":"https:\/\/www.rightwinggranny.com\/?p=58693"},"modified":"2025-03-09T12:37:34","modified_gmt":"2025-03-09T16:37:34","slug":"when-the-courts-are-out-of-control","status":"publish","type":"post","link":"https:\/\/www.rightwinggranny.com\/?p=58693","title":{"rendered":"When The Courts Are Out Of Control"},"content":{"rendered":"

On Friday, Newsmax<\/a> reported that Walmart is considering leaving Delaware as the state of its incorporation.<\/p>\n

The article reports:<\/p>\n

Walmart is among the latest and biggest companies considering leaving Delaware as its location of incorporation.<\/strong><\/p>\n

A small group of corporate attorneys last month told Delaware legislators that blue-chip companies including Walmart were considering moving their corporate legal residences out of the state, Semafor<\/a> reported.<\/strong><\/p>\n

The news is said to have Delaware’s political and business leaders reeling.<\/strong><\/p>\n

The small state of Delaware with just over 1 million people derives more than one-third of its state budget from corporate legal fees, not to mention the far greater impact corporation business has on the economy.<\/strong><\/p>\n

There is a reason for this exodus:<\/p>\n

Billionaire Elon Musk began the corporate stampede when he moved multiple companies out of Delaware, including Tesla, SpaceX and Neuralink.<\/strong><\/p>\n

The move came after Delaware Chancellor Judge Kathaleen McCormick, a Democrat, ordered Musk to give up a compensation package<\/a> valued at $55.8 billion, though it was twice approved by shareholders.<\/strong><\/p>\n

The ruling followed McCormick’s January 2024 decision that called the Musk pay package excessive and rescinded it.<\/strong><\/p>\n

The move surprised investors and cast uncertainty of the state’s long-held position as a neutral corporate arbiter.<\/strong><\/p>\n

Despite painting Musk’s compensation as greedy, McCormick did award the trial lawyers who sued Musk a staggering $345 million for their legal filings.<\/strong><\/p>\n

At issue for Musk, Fortune 500 CEOs and entrepreneurs across the U.S. is that the Delaware Court of Chancery has become a haven for shareholder lawsuits and left-wing judicial activism.<\/strong><\/p>\n

Musk was not happy with McCormick’s ruling and took to X<\/a>, writing, “Shareholders should control company votes, not judges.”<\/strong><\/p>\n

Another Musk repost stated: “Things to do in Delaware: 1) Leave.”<\/strong><\/p>\n

Musk has also urged other companies to quit Delaware<\/a> as well.<\/strong><\/p>\n

“Never incorporate your company in the state of Delaware,” Musk wrote on X<\/a>.<\/strong><\/p>\n

The courts should not be able to override the wishes of the stockholders in a privately held company. Actions have consequences.<\/p>\n","protected":false},"excerpt":{"rendered":"

On Friday, Newsmax reported that Walmart is considering leaving Delaware as the state of its incorporation. The article reports: Walmart is among the latest and biggest companies considering leaving Delaware as its location of incorporation. A small group of corporate … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[17802,3069,11848,7830,1385,17307],"class_list":["post-58693","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-corporate-legal-residences","tag-delaware","tag-elon-musk","tag-newsmax","tag-walmart","tag-x"],"_links":{"self":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/58693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58693"}],"version-history":[{"count":1,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/58693\/revisions"}],"predecessor-version":[{"id":58694,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=\/wp\/v2\/posts\/58693\/revisions\/58694"}],"wp:attachment":[{"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rightwinggranny.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}