The reason why companies are leaving there and incorporating in the state of Texas is because in Texas, we are going to strictly apply the business judgment rule. We're codifying it right now. But also we're We are limiting to some extent those who can bring derivative actions. That's what was brought against Elon Musk by a guy who owned, I think it was, six or nine shares of Tesla stock. (07:41–07:49)
CLAIM
Asserts that Texas is limiting who can bring derivative actions.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
