Delaware is considering providing greater protection for corporate officers in court against shareholder lawsuits following criticism from prominent business figures like Elon Musk. The legislation, supported by Governor Matt Meyer and local business leaders, was passed swiftly by lawmakers, although it has faced backlash from shareholders' lawyers and pension funds who view it as favorable treatment for billionaires and corporate insiders.

Delaware is home to 2.2 million business entities, including two-thirds of Fortune 500 companies, which benefit from the state's renowned corporate law courts and experienced judges specializing in corporate law. Despite having a population estimate of 1,051,917 residents, corporations registered in Delaware outnumber residents two to one.

In 2024, 81% of all US initial public offerings were recorded in Delaware, generating around $2.2 billion in annual revenue for the state government through corporate fees and taxes. This revenue, comprising about one-third of the total state operating budget, helps uphold Delaware's zero sales tax rate, making it an attractive destination for residents of neighboring states looking to make high-priced purchases.

A notable case involving Elon Musk saw a $55 billion compensation package awarded by Tesla in 2018 being rejected by a Delaware judge last year due to concerns over director independence and inadequate disclosures in shareholder documents. Following a reevaluation, Tesla shareholders voted to reinstate Musk's compensation package, initially valued at $45 billion, which had decreased in value alongside Tesla's falling stock prices.