Abstract
With an advanced corporate code and a highly respected Court of Chancery, Delaware has long been America’s home for big business. But its status may be in jeopardy. Within the past year, the Court of Chancery has shattered two market practices and reminded stakeholders of the uncertain nature of fiduciary duties. Corporations have responded. Termed “DExit,” corporations are leaving Delaware for competing jurisdictions, namely Texas and Nevada. As corporations leave Delaware, so do their tax dollars. Delaware’s fiscal stability is directly tied to the continued presence of corporate charters in Delaware. Delaware residents enjoy a low tax burden, with the General Assembly disproportionately relying on corporate licensing fees to fill the State’s coffers. If corporations continue to leave Delaware, the General Assembly will have to search for new sources of tax revenue. Moreover, as other courts adjudicate landmark corporate governance cases, the Court of Chancery will lose its integral role in providing a trusted body of caselaw for other courts. ..
Document Type
Article
Publication Date
2026
Recommended Citation
Derek S. Hubbard, Under Pressure: Delaware, Corporate America, and Certified Questions, 60 U. Rich. L. Rev. 853 (2026).
