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Comment by no_circuit | Hacker News Reader

Yes, from https://www.txse.com/solutions:

  TXSE's goal is to provide greater alignment with issuers and investors and address the high cost of going and staying public.

The alignment part translates IMO to avoiding political / social science policy issues like avoiding affirmative action listing requirements like the Nasdaq Board Diversity Rules that was just recently repealed: https://corpgov.law.harvard.edu/2025/01/12/fifth-circuit-vac....

So it is as one might imagine, the formation was probably for similar reasons why owners are moving their company registration out of Delaware.

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In a structurally-biased environment, the loss of policies that counteract that bias does not allow companies to "avoid" politics and social science; it allows them to take the side in favor of the structurally-biased status quo. Just so we're clear about what that is.

Delaware protects the shareholders. It's uncertain what will happen in Texas.

https://www.bloomberg.com/opinion/articles/2024-02-01/texas-... https://www.bloomberg.com/opinion/articles/2025-02-03/texas-...

I'm sorry but what?

Delaware law exclusively protects the interests of the board of directors. It allows for a unique provision - the hilariously misnamed "Shareholders Rights Plan" that enable a board of directors to issue shares as they please, in order to make sure every attempt at takeover isn't against the interests of the directors.

The only check on the power of the board in a Delaware corporation is the Delaware court of chancellery.

The irony is that the Levine article the parent provided argues that DE did the exact opposite of shareholder wishes!

> it is weird that Tesla’s management and board of directors and (a large majority of) shareholders all agreed that Musk should get paid $55.8 billion for creating $600 billion of shareholder value, and he did do that, and he got paid that, and a judge overruled that decision and ordered him to give back the money. I can see why Musk — and Tesla’s board, and its shareholders — would find that objectionable! They’re trying to run a company here.

The recent story involving Elon's compensation package has also put into question how seriously Delaware upholds business contracts.

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