Musk seeks Tesla shareholder vote on moving incorporation to Texas

Tesla, opens new tab will hold a shareholder vote to transfer its state of incorporation to Texas from Delaware, CEO Elon Musk said on Thursday, days after a judge invalidated his $56 billion pay package at the electric vehicle (EV) maker, reports Reuters.
On Tuesday, Delaware judge Kathaleen McCormick called the 2018 share-based pay package, the largest in corporate America, "an unfathomable sum" that was unfair to shareholders and found it was negotiated by directors who appeared beholden to Musk.
"Never incorporate your company in the state of Delaware," Musk posted on social media X shortly after the ruling and also started a poll asking if Tesla should now incorporate in Texas. More than 87 per cent of the over 1.1 million votes cast were in favor of the shift.
"The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas," Musk said in his latest post on X, formerly known as Twitter.