ANALYSIS: Nevada Reincorporation Trend Tied to Amended Code

Delaware is the long-standing “corporate capital of the world,” yet other states have been gearing up to challenge the First State’s dominance as an incorporation venue.

Nevada and Texas have amended their corporate statutes to offer corporate-friendly laws and incentives for companies to choose their state. Texas has established a business court—and Nevada has proposed establishing one—to rival the Delaware Chancery Court. In response, Delaware expeditiously amended its own corporate laws this year.

I analyzed definitive proxy statements filed in the past decade citing reincorporation to determine the extent of “DExit” and why companies leave. The ...