What happened: Meta is exploring moving its legal incorporation from Delaware to Texas, following its decision to relocate trust and safety teams to the state for increased neutrality.

Remind me: Meta, which owns Facebook, Instagram and WhatsApp, has been incorporated in Delaware since 2004, benefiting from that state’s respected corporate court system. 

• However, as Delaware courts have introduced uncertainty into corporate governance statutes, Texas has emerged as an increasingly attractive alternative, offering incentives, a newly launched business court specializing in complex disputes and a stock exchange. The Texas Business Court—which TLR helped create in 2023—is one of the most transformative changes to Texas’s legal system in decades.

Worth noting: Texas continues to attract businesses to the state, with major companies like Tesla and Oracle already making the move.

TLR Thoughts: As more companies seek out business-friendly states that foster innovation and minimize unnecessary legal costs, Texas has an opportunity to further solidify its role as a leader in corporate governance. This competitive advantage must be preserved by legislative action that ensures Texas’s lawsuit environment is fair and predictable and its regulatory climate reasonable.

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