The owner of Facebook, Instagram and WhatsApp is considering replacing Meta, where it has been included in another state from delaware, two people said with the knowledge of the case.
The company is looking at Texas and a handful of other states, said people said, who were not authorized to speak on confidential discussions. This process is in an early stage and no decision has been taken, he said, and the corporate headquarters of the meta will remain in Menlo Park, California.
Meta is undergoing a corporate overhaul under the company’s founder and CEO Mark Zuckerberg. Mr. Zuckerberg has spent cutting the work force in the last two years so that the company works more quickly and efficiently. Recently, he has laid off President Trump and Policy makers in Washington as he has established an agenda for issues such as antitrust and artificial intelligence, which will affect the largest technical firms.
A Meta spokesperson refused to comment on a possible rebirth. The Wall Street Journal Reported earlier The company can get out of delaware and rebirth in Texas or other places.
Since the meta was established as Facebook in 2004, it is included in the delaware. Several shareholder cases are filed in delaware courts, and Meta has faced litigation from several cases, with a scam on the user privacy that incorporates voter profiles Cambridge Analytica in 2018.
Including another state that can be more favorable for companies than plaintiffs in class action cases, future shareholders can help Meta in litigation, people said.
Last year, Elon Musk’s private rocket company, SpaceX changed its inclusion in Texas with Delaware. Mr. Musk took steps in Tesla after zero his pay package in Tesla, which takes the electric vehicle manufacturer, which he takes.
The case was brought by Tesla shareholders who were challenging a stock option package, which allowed Mr. Musk to acquire about 304 million Tesla shares at a predetermined price when achieved some goals of the company. The judge ruled that Mr. Musk had effectively oversee his own compensation plan, at that time the value of more than $ 50 billion, which was with the help of board members.
Professor of Corporate Law and Governance Eric Tally said, “Anyone can read it as a condition because Musk had shifted Tesla and some of his other companies to Texas, the client effect would be that it is one for the controllers Will develop jurisprudence -friendly. ” Columbia Law School.
Over the years, the Delaware Chancery Court has also issued a government in other cases, which have extended the former case law in the state and have sent revaluation through legal circles about long -established corporate administration practices. Some of those decisions strengthened shareholders and deprived corporate board of directors.
The meta has a dual-class stock structure that effectively gives full control of the company and its board of directors to Mr. Zuckerberg, something that can be challenged by recent rule in delaware.
Including Texas is easy for installed companies like meta and Tesla, Mr. Tally said. A small company still appears to be more valid, and reliable for shareholders, if it is included in the delaware as the state has legal requirements for operations, they said.
“Hopefully, Musk and Zuckerberg have that the courts in Texas will be very permissible about them that they want, even if it involves a conflict of interest,” said Mr. Tally. “Texas has a very long strap.”
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