Texas has reshaped its corporate landscape through four landmark laws designed to provide businesses in Texas with greater governance flexibility and reduced litigation risk.
Delaware has long been considered the default state of incorporation for startups seeking to raise institutional capital. It is also the state of organization for more than two-thirds of Fortune 500 companies organized in the United States. A series of recent moves by high-profile public companies and investors has, however, called Delaware’s previously unchallenged status as the nation’s de facto corporate law into question.
Against this backdrop, the Texas legislature has adopted sweeping amendments to the Texas Business Organizations Code (the TBOC) designed to make Texas a more attractive destination for businesses.
This Client Alert analyzes these four new laws and considers the practical impacts for corporations that are currently (or are considering becoming) organized in Texas, listed on a Texas stock exchange, or in certain cases headquartered in Texas.
