Exxon Mobil Corp. is seeking to shift its legal home to Texas after being incorporated in New Jersey for more than a century.
In a proxy filing on Tuesday, the oil company said moving would mean operating in a more favorable business environment where officials are more familiar with its operations, provide greater certainty for decision-making, and align its legal and physical headquarters. Exxon asked investors to vote in favor of the transfer in its annual shareholder meeting in May.
Domiciling in Texas “may reduce the risk of future frivolous litigation against the Texas Corporation and its directors and officers,” Exxon, which already has its headquarters in the state, said in the filing.
Texas has been luring companies in recent years by promoting low regulations and taxes, as well as creating a new stock exchange. Tesla Inc. and SpaceX both moved their legal homes two years ago to the Lone Star State from Delaware, where almost 70% of Fortune 500 companies are based. Chevron Corp. moved its physical headquarters last year to Houston from California.
Domiciling in Texas “may reduce the risk of future frivolous litigation against the Texas Corporation and its directors and officers,” Exxon, which already has its headquarters in the state, said in the filing.
Texas has been luring companies in recent years by promoting low regulations and taxes, as well as creating a new stock exchange. Tesla Inc. and SpaceX both moved their legal homes two years ago to the Lone Star State from Delaware, where almost 70% of Fortune 500 companies are based. Chevron Corp. moved its physical headquarters last year to Houston from California.
Read the full article by Saijel Kishan and Kevin Crowley / Bloomberg
