The Billionaires Bill passed in Delaware spells bad news for everyone else
The Delaware state legislature, dominated by Democrats, has approved a bill written by the law firm representing Elon Musk. Critics argue that this bill, which the governor must sign to become law, will change the structure of corporate law in the US by potentially allowing corporations to embezzle funds, leaving little room for consumer or shareholder legal claims.
The SB 21 bill is a controversial piece of legislation written by a law firm whose clients include Musk. The bill, which would rewrite corporate regulation in the state, has raised concerns among consumer and worker groups because critics believe it will allow corporations to misbehave with fewer consequences. Bloomberg reported that the bill was approved on Tuesday night, thanks to extensive lobbying efforts on behalf of corporations.
**Opposing Arguments**
Critics claim that SB21 will fundamentally rewrite US corporate law rules, altering the balance of power between corporate trustees and shareholders. This could increase corporate secrecy significantly, making it nearly impossible for shareholders to sue companies for corporate misconduct. The bill could revoke disclosure requirements for shareholders in various company documents, records, and internal communications, making it difficult for shareholders to file legitimate claims.
One of the reasons Democrats may have yielded to lobbyists’ campaign is the fear of revenue loss. Delaware’s state budget heavily relies on corporate fees, so an exodus of companies would create a financial gap. Elon Musk publicly moved his businesses to Texas and encouraged others to do the same, possibly due to a legal case in Delaware involving his corporate compensation package at Tesla. Some speculate that the new law could pave the way for Musk to receive his money by undermining the current legal argument.
This article has been translated from Gizmodo US by Lucas Handley. The original version can be found [here](original version link).
