Workers update signage at Dell Technologies World Headquarters in Round Rock, Texas.
Dell Technologies shareholders have overwhelmingly approved the company’s decision to switch its state of incorporation from Delaware to Texas. The move, announced by CEO Michael Dell on the X platform, signifies a legal homecoming for the tech giant, which was founded in Texas while Dell was a student at the University of Texas at Austin.
“Today, with 97% approval, Dell shareholders voted to bring our legal home to Texas,” Michael Dell stated. “This is home and where we’ve always belonged. Texas gave us the talent, the universities, and the environment to build something that lasts. Proud to make it official. Let’s go.” The company’s board of directors had previously approved the proposal in May.
Dell Technologies has maintained its corporate headquarters in Texas for decades, establishing a significant presence in the Austin area, including its corporate headquarters campus built in Round Rock in 1994. This reincorporation means that future legal disputes involving shareholders will be handled by Texas courts, which are perceived as more business-friendly for such cases, rather than the Delaware Court of Chancery.
The shift mirrors a similar move by Tesla CEO Elon Musk, who relocated Tesla’s state of incorporation from Delaware to Texas following a controversial ruling by the Delaware Court of Chancery that voided his $56 billion pay package. Musk had publicly advised against incorporating companies in Delaware after that decision. He has since moved other ventures, including SpaceX, to Texas, with some relocating to Nevada.
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