Dell Technologies announced Thursday that shareholders have given approval to the company’s plan to move its state of incorporation from Delaware to Texas.
Michael Dell, founder and CEO of Dell Technologies, announced the results of the shareholder vote, mostly in favor of this decision, in a post on the X platform social networks.
“Today, with 97% approval, Dell shareholders voted to return our legal framework to Texas” said Dell.
“This is our home and where we’ve always belonged. Texas has given us the talent, the universities and the environment to build something that lasts. Proud to make it official. Let’s do it,” Dell added.
DELL WORKFORCE DECLINES BY 10% FOR THE THIRD CONSECUTIVE YEAR
Dell Technologies CEO Michael Dell announced the legal decision on Thursday. (Diego Donamaria/Getty Images for SXSW)
The company’s board of directors approved the proposal in May ahead of the shareholder vote, during which Dell said: “Texas is where Dell has innovated, developed and invested for more than four decades, and establishing our legal headquarters in Texas reflects what we have built here since the beginning.” »
Dell Technologies has long maintained its headquarters in Texas, founded while Dell was studying at the University of Texas at Austin and living in a college dorm in 1984.
The company has built a strong presence in the Austin area, including its offices and manufacturing facilities, and in 1994 built a new campus for its headquarters in Round Rock, Texas.
ELON’S EXODUS: TRACKING MUSK’S CORPORATE CHANGES
Dell shareholders voted to move their legal headquarters to Texas, where the company is headquartered in Round Rock. (Brandon Bell/Getty Images)
By changing the state in which the company is legally domiciled, Dell Technologies will shift the venue for future legal disputes with shareholders from the Delaware Chancery Court to the Texas state courts, which are considered to have a more business-friendly approach to shareholder suits.
CEO of Tesla Elon Muskwhich moved Tesla’s state of incorporation from Delaware to Texas following a controversial decision by the Delaware Court of Chancery, applauded Dell’s decision on its X social media platform with a one-word response to Michael Dell’s post that simply said “Texas.”
ELON MUSK MOVES SPACEX TO TEXAS AFTER DELAWARE REVOKES HIS TESLA SALARY PACKAGE
Teleprinter Security Last Change Change % DELL DELL TECHNOLOGIES INC. 394.10 -2:75 p.m. -3.61% Musk sought shareholder approval for the change after a Delaware Court of Chancery judge issued a ruling that canceled his $56 billion salary in January 2024, prompting him to warn: “Never incorporate your business in the State of Delaware.”
Tesla shareholders ultimately approved this decision, while the Delaware Supreme Court overturned the judge’s decision in December 2025. Later that month, Tesla shareholders approved new compensation valued at approximately 1 trillion dollars whether operational and financial objectives are achieved.
Elon Musk moved the state of incorporation of Tesla and SpaceX from Delaware to Texas. (Suzanne Cordeiro/AFP via Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Musk also moved the state of incorporation of some of his other companies out of Delaware, with SpaceX his legal domicile was moved to Texas in February 2024. Several of his other businesses had their state of incorporation changed to Nevada.
