In a recent court hearing, members of Delaware’s top court expressed doubts about a ruling that held TripAdvisor Inc.’s controlling stockholder, Greg Maffei, could be liable to shareholders if the company’s relocation to Nevada resulted in a decrease in corporate value. The decision to allow the travel company’s move to Nevada was seen as a positive development, as it addressed concerns about Delaware’s reputation as a state that companies could not easily leave.
Insiders at TripAdvisor Inc. defended the relocation, arguing that assigning a dollar value to the benefits of Delaware’s corporate laws was problematic. The move to Nevada was seen as a strategic decision that would potentially offer advantages to the company.
Maffei’s appeal in the case involves challenging the ruling that held him accountable for any reduction in corporate value due to the relocation. The court’s skepticism about the previous ruling could indicate a potential shift in the outcome of the case.
Overall, the court hearing highlighted the complexities of corporate relocations and the challenges of determining the financial implications of such moves. The discussion surrounding TripAdvisor Inc.’s relocation underscores the importance of considering all aspects of a company’s decision to change its state of incorporation.
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