ANALYSIS: DExit Proposals Eye Nevada; Delaware Remains Popular

Reports of companies looking to reincorporate out of Delaware (dubbed “DExit”) have been (somewhat) substantiated in the early days of proxy season. Ten companies have already filed definitive proxy statements that call for a shareholder vote on reincorporation—and only one is looking to reincorporate in Delaware.

But Delaware’s historical stronghold on incorporation is unlikely to change any time soon.

Proposals Shift From Delaware to Nevada

In the recent past, relatively few companies have proposed taking the resource-intensive step to reincorporate in another state, and those corporations willing to undertake that effort were largely looking to move to Delaware, ...