TEXAS — Round Rock-based Dell Technologies Inc. is coming home to the Lone Star State.
According to the San Antonio Express-News, Dell’s entire board voted in favor of reincorporating in Texas, and shareholders will also cast votes on the matter at an annual meeting in June. The relocation would make Texas Dell’s “legal home,” according to CEO and board chairman Michael Dell.
The vote comes almost a year after conflict arose between Texas and Delaware, the world’s incorporation capital. Last summer, Oklahoma and Nevada joined Texas in making legal changes that would help them enter the world of corporate litigation and challenge Delaware’s dominance.
Delaware then made changes aimed at holding onto corporations that bring the state millions in corporate franchise taxes.
Delaware has “a specialized court and business-friendly laws” that draw in corporations and startups, the Associated Press reported, and Texas created its own business court last year. The Lone Star State showed “bipartisan support for legislation diminishing shareholder powers and giving businesses more legal protections against shareholder lawsuits,” according to the Associated Press.
The Express-News reported that Dell recently renovated some of its Round Rock headquarters and put $750 million toward constructing an AI-focused University of Texas medical center.
In 2024, Elon Musk made a similar incorporation move by taking Tesla and SpaceX to Texas.