Sectors
Foley & Lardner LLP partners Chrisopher Babcock and Chris Converse commented on the widening trend of corporate reincorporations to Texas in the Houston Business Journal article, “Texas law changes could spark wave of corporate redomestication proposals.”
“This is something we expect to watch playing out over the next five to 10 years,” Babcock commented, noting the impact of SB29, legislation passed last year that made several important changes to Texas business codes. Converse added that he projects more companies are likely to propose moves in their proxy filings this year.
On the changes made in Texas that are fueling these moves, Babcock explained the state “created a ‘clear standard’” when it comes to business judgment, supporting predictability through deferring business decisions to the board and presuming they are performing their duties in good faith.
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