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The Delaware 'Billionaire's Bill' That Just Passed Is Bad News for Everyone Who Isn't a Billionaire - Gizmodo
A piece of legislation that was written by the law firm representing Elon Musk has been passed by the state of Delaware’s Democrat-controlled legislature. Critics maintain that the bill, which now only needs to be signed into law by the governor, will fundamentally alter the structure of corporate law in the U.S., allowing corporations to potentially engage in malfeasance while leaving little room for legal retaliation by consumers or company shareholders.
SB 21 was originally drafted by Richards, Layton & Finger (RLF), a law firm that counts Musk as one of its clients. The contentious legislation, which would re-write corporate regulation in the state, has been a deep source of concern by worker and consumer groups, as critics maintain it will free corporate America up to behave badly and suffer less consequences. Now, Bloomberg reports that the bill was passed Tuesday night, thanks to the help of a large, pro-corporate lobbying effort. The outlet writes:
A team of five lobbyists hired by the American Investment Council, which is funded by the likes of Blackstone Inc. and KKR & Co., had pressed lawmakers to support the measure. The “billionaires’ bill,” as some detractors called it, eased the standards for insider deals involving controlling shareholders and for rich compensation packages for founders like Musk. An army of professional influencers had been “swarming the statehouse,” as one legislator put it.
The drama behind the bill’s passage runs deep. For a very long time, Delaware has been home to a majority of American corporations due to its lenient business laws. Recently, the state’s status as the corporate capital of the country was threatened by pressures—from Musk, but also by other major companies and business personalities—to encourage businesses to leave the state. It appears that, in an effort to stop companies from fleeing, the state legislature has acquiesced to businesses’ priorities.
SB 21 was originally drafted by Richards, Layton & Finger (RLF), a law firm that counts Musk as one of its clients. The contentious legislation, which would re-write corporate regulation in the state, has been a deep source of concern by worker and consumer groups, as critics maintain it will free corporate America up to behave badly and suffer less consequences. Now, Bloomberg reports that the bill was passed Tuesday night, thanks to the help of a large, pro-corporate lobbying effort. The outlet writes:
A team of five lobbyists hired by the American Investment Council, which is funded by the likes of Blackstone Inc. and KKR & Co., had pressed lawmakers to support the measure. The “billionaires’ bill,” as some detractors called it, eased the standards for insider deals involving controlling shareholders and for rich compensation packages for founders like Musk. An army of professional influencers had been “swarming the statehouse,” as one legislator put it.
The drama behind the bill’s passage runs deep. For a very long time, Delaware has been home to a majority of American corporations due to its lenient business laws. Recently, the state’s status as the corporate capital of the country was threatened by pressures—from Musk, but also by other major companies and business personalities—to encourage businesses to leave the state. It appears that, in an effort to stop companies from fleeing, the state legislature has acquiesced to businesses’ priorities.
https://gizmodo.com/the-delaware-billionaires-bill-that-just-passed-is-bad-news-for-everyone-who-isnt-a-billionaire-2000581308
