For decades, Delaware has been the undisputed leader for corporate incorporation, known for its established legal framework and business-friendly environment. However, a shift is underway, with Texas positioning itself as a compelling alternative.
Bracewell’s Will Anderson told Directorship Magazine he believes that Texas is further marketing itself to companies concerned about jurisprudence in Delaware by creating a streamlined process for approving related-party transactions.
“If you’re a board and you create a special committee for some interested party transaction … you could go to a Texas court and have a determination that the directions are in fact independent, and that way it wouldn’t be second-guessed later by a court,” Anderson said. In Delaware, he added, “sometimes you can create a committee, have it do all of its work, enter into a transaction, and then later, the court finds some sort of problem with independence.”
