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this post was submitted on 13 Jun 2024
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Someone ELI5 why does a Delaware court have any say over tesla stock options?
This Reuters article provides a decent summary: https://www.reuters.com/legal/case-against-elon-musks-56-billion-pay-package-2024-01-30/
Tesla is incorporated in Delaware.
To add onto this for anyone interested, the reason it and many businesses are incorporated in Delaware specifically is because it has a very pro-business legal and judicial system. Many businesses benefit from choosing that state over others and can find loopholes that allow them to save money (though there have been efforts to eliminate those loopholes in much of the country).
Phil Edwards recently released a video on this, which is how I found out about it: https://youtu.be/b4q99EuZF_Q
And this is the article that inspired the video: https://www.atlasobscura.com/places/corporation-trust-center