Meta, the owner of Facebook, Instagram, and Whatsapp, is considering changing the location incorporated into another state from Delaware.
People who were not allowed to talk about secret arguments that the company is considering Texas and several other states. The process is in the early stages, no decision is made, and the head office of the meta remains in Menro Park, California.
Meta overhaules the company under Mark Zuckerberg, the founder and highest executive of the company. Zuckerberg has reduced labor for the past two years so that the company is operating more quickly and efficiently. Recently, he has been actively trying to trial with Washington’s President Trump and policy proprietors, and has set agenda on issues such as monopoly laws and artificial intelligence that affect the largest high -tech companies.
META’s Spokesman has refused to comment on potential redistribution. The Wall Street Journal had previously reported that the company could leave Delaware and re -incorporate it in Texas or other places.
Meta has been incorporated into Delaware since its Facebook was founded in 2004. Many shareholder lawsuits have been submitted to the Delaware Court, and Meta faces the lawsuit in many cases, including those in the privacy scandal involved in voter profiling company CAMBRIDGE Anally in 2018.
People have stated that in a group lawsuit, if they are incorporated into a more advantageous state for companies than plaintiffs, they may be able to use meta in future shareholder lawsuits.
Last year, Elon Musk’s private rocket company SPACEX switched from Delaware to Texas. Musk moved a few weeks after the Delaware judge had invalidated his salary package at Tesla, an electric car manufacturer led by him.
The case was brought by Tesla shareholder, who was trying a stock option package that Musk achieved a specific goal to get about 340 million shares at a preset price if he achieved a specific goal. Judge has determined that Musk has effectively supervised his compensation plan, which was evaluated as more than $ 50 billion at the time, with the help of a compliant Board of Directors.
“The mask has moved some of Tesla and his other companies to Texas, so the client’s effect is to develop a controller -friendly law,” said Governance Professor Eric Tally. Masu. Columbia Roast School.
Over the past few years, the Delaware Chance Court has also issued a ruling in other cases that have overturned the state law in the state and have been reverberated through long -term corporate governance customs. Some of these rulings are blessed with shareholders and unusual boards.
Meta has a dual -class stock structure that effectively provides Zuckerberg to Zuckerberg, who can challenge Delaware’s recent ruling.
Incorporating it into Texas is easy for established companies, such as Meta and Tesla. He said that if a young company was incorporated into the Delaware state because the state had more strict legal requirements for management, it would look more reliable for shareholders.
“The hope that the mask and the Zuckerberg have a conflict of interest is to much more forgiving the Texas court do what they want,” said Tally. Ta. “Texas has a much longer rope.”
