Directors need to assess the pros and cons of leaving Delaware and brace for litigation if they are seriously considering redomesticating

Some public companies are exploring the possibility of moving out of Delaware and redomesticating in other states, corporate lawyers say; however, the numbers do not portend a Delaware exodus.

These considerations are taking place as other states like Nevada and Texas fastidiously work to make their laws more hospitable to corporations. They also fall on the heels of several Delaware Chancery Court rulings that were seen as unfriendly to directors and officers.

…Companies that want to reincorporate in a new jurisdiction need to propose the move to shareholders in companies’ proxy statements.

In the past two years, there have been five companies in the Russell 3000 that offered proposals to move to Nevada in their proxies, according to data from MyLogIQ. In the three years prior, there were none.