Interesting news item that just popped up. South Dakota home-grown success story Daktronics is making the business decision that Delaware has a more business friendly legal framework that South Dakota, so they are changing their state of domicile out there:
“Delaware is the legal domicile for most large, publicly traded companies, and its corporate law is well understood, clear and predictable and provides strong shareholder rights and protections,” Reece Kurtenbach, Daktronics’ Chairman, President and Chief Executive Officer said in a news release.
According to Harvard Business Services Inc. “One of the main reasons why companies incorporate in Delaware is the legal and liability protection of established corporate laws. Delaware’s well-established and business-friendly legal framework is designed to provide a clear and flexible environment for businesses to operate.”
Read the entire story at KELOland.
Kind of a shame that our legislature spends more time on goofiness than being the most business friendly state in the nation.
This is no surprise most businesses incorporate in Delaware; especially if they deal with international clients or our publicly traded.
Disney, ford, GM, coca-cola, comcast, Walmart, and google are all incorporated in Delaware.
I’m assuming this was more of strategic growth measure than a political one.
Oh the Irony! Congresswoman Sarah McBride a Democrat represents Delaware and former president Joe Biden also a Democrat is from Delaware where he was their long serving senator.
Meanwhile in South Dakota another year of nationally embarrassing culture war bills in our legislature dominated by political extremists. Political extremists are bad for business, are anti-freedom and anti-opportunity.
Meh seems like a stretch and roundabout way to take a shot at the Legislature. Not that the Legislature doesn’t deserve ridicule from time-to-time but I don’t think this has anything to do with what they’re doing. I think it has everything to do with Daktronics’ shareholder drama.
Delaware is the capital of corporate legal domiciles, just like SD is the capital of trust companies. It just is what it is.
Anon at 1:56 and Anonymous at 12:16…. You both nailed it. Daktronics is doing business just fine in South Dakota — its stock is at 10-year highs, it employs nearly 2,800 people, and everyone sees its products at major sporting events worldwide. There isn’t one thing state lawmakers could do to make things better for the Brookings company.
Highly unlikely but if the company were to think about shifting operations elsewhere, moving legal domicile would be the logical step to take.
If I were a legislator, I’d be doing everything I could to keep them in SD. I wouldn’t be pushing the ten commandments, prayer, and whatever else the radical right wingers are pushing. I can’t comprehend their mentality. What a sad sad sad state of affairs in our state. I’m embarrassed to say I’m a Republican with those wing nuts in power.
Will they need to change the name – “un-Aware Tronics”?
Not going to be fun watching this incompetent Republican legislature undo all of Noem’s hard work.