Delaware Representative Sophie Phillips, a Democrat, shared that the lobbying for the bill has become highly intense, with lobbyists from both sides being heavily active in the statehouse like never before for a single legislation.

Opponents of Senate Bill 21 argue that concerns about companies relocating are exaggerated and are being used to push forward legislation that favors billionaires and influential corporate insiders over smaller shareholders.

Private equity firms are closely watching Senate Bill 21 as it may impact their exposure to shareholder lawsuits post initial public offerings. Larger private equity firms stand to benefit the most from the bill as it could help mitigate shareholder lawsuits in various transactions.

The urgency for the bill increased when Elon Musk moved his companies to Texas and Nevada following a legal setback in Delaware. Lobbyists funded by Blackstone Inc. and KKR & Co. have been rallying support for the bill, which some critics dub as the "billionaires' bill." Critics fear that loosening regulations for controlling shareholders could make the Chancery Court less favorable to shareholders seeking justice.

The bill aims to provide predictability for Delaware law and has received unanimous support in the state Senate. In response to concerns that companies might leave Delaware, government officials stress the importance of Delaware's business-friendly environment and its significant corporate presence.

Despite potential opposition, the bill is likely to pass the state House of Representatives and be approved into law, underscoring the importance of Delaware's favorable corporate environment. Proponents argue that the bill offers guidance for governance practices without drastically altering existing regulations, highlighting the potential repercussions of losing significant private equity firms to other states.