Meagan Reda Quoted in Diligent on the Race to Replace Delaware

Olshan Shareholder Activism partner Meagan Reda was recently quoted in a Diligent Market Intelligence article examining the growing competition among U.S. states to attract corporate charters as companies weigh reincorporating away from Delaware in favor of states like Texas or Nevada. Meagan observed that Delaware's dominance is not in immediate jeopardy. “I don't anticipate Delaware becoming a ghost town for corporations anytime soon, particularly given that the state has historically adapted to corporate law and evolving business needs and it really does have this well-developed corporate code, and dedicated judiciary that is admired,” she said. Meagan cautioned, however, that investors will scrutinize the motives behind any such move. “Any move by a board that seeks to minimize accountability or lessen shareholder rights is concerning. An investor is not going to view that favorably,” she said, adding that boards and management teams remain accountable at the ballot box regardless of where they incorporate.