Shareholder approval sought for Titan’s Delaware incorporation
Titan International is urging its stockholders to approve the reincorporation of the company from the US state of Illinois to the state of Delaware at its annual shareholders meeting on 4 June. This move has already been unanimously approved by the tyre maker’s Board.
Titan gives a number of convoluted grounds for wanting to reincorporate as a Delaware company, however the advantages of such a move are very clear to see – Delaware’s business law is one of the most flexible in the US, and companies are not required to pay state corporate income tax if they do not transact business there. And the state’s court system is also company-friendly – the Delaware Court of Chancery hears only business cases and does rely upon juries.
More than half of all public and Fortune 500 companies are incorporated in Delaware.