Corporate boards’ loss of faith in Delaware’s elusive new ‘good faith’ contrivance

From the source

Could the corporate flight from Delaware accelerate amidst the controversial Cloudflare Delaware court decision? Over two-thirds of Fortune 500 firms and 70% of U.S. initial public offerings are incorporated in Delaware given the historic predictability and consistency of its specialized court system; but sadly times are changing. A controversial recent court decision in a widely watched case involving Cloudflare has resparked fresh fears that the unfortunate corporate exodus out of Delaware will only accelerate from here. A disclosure before anything else Cloudflare’s special committee retained us, based on our four decades of recognized governance expertise, to present our widely published research on when companies with dual-class shares outperform and when companies with dual-class shares underperform as the committee deliberated its dual-class share structure. We shared with the committee what we have published for years in academic outlets and in Fortune, as well as elsewhere.…

BestAIBroker analysis

• Finance-aware sentiment: neutral (+0.00 on a -1 to +1 scale).
• Event classification: OTHER.
• Market importance score: 32/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
• Symbols referenced: NET.