Citizens for a Pro-Business Delaware plans to back candidates that favor its plan to change corporate law in Delaware.
Citing the inaction of state senators to a bill that would require for a three-delay in selling a profitable company with an ownership deadlock, the group announced plans to form a political action committee (PAC)
“We have traversed the state and promised Delawareans that we would broadcast their concerns over anti-business tendencies of certain members of this legislature,” said Chris Coffey, Campaign Manager of Citizens for a Pro-Business Delaware. “Lawmakers aren’t listening and since many lawmakers’ only competition is the primary elections, where only a few hundred votes can make all the difference, we will make sure that pro-business candidates are viable in those early races.”
The group noted that other states, including Wyoming and Nevada, have publicly discussed their interest in using the TransPerfect case as an opportunity to lure businesses to incorporate in their states.
Wyoming’s Secretary of State, Ed Murray, stated in Wyoming Business Report, “[The Shawe v. Elting case] is already starting to create some ripples as to just how friendly, or not, Delaware is in its corporate law. It could end up demonstrating a shift in thinking, when people are looking for a place to form a corporation.”
Owners Philip Shawe and Elizabeth Elting have been locked in an ownership dispute that has resulted in Delaware Chancery Court setting in motion the sale of the company with Chancellor Andre Bouchard appointing a former vice chancellor to try to hammer out a solution.
Elting has supported the sale of the translation and business services company. Employees claim selling TransPerfect at a premium price would lead to mass layoffs.
Critics of Citizens for a Pro-Business Delaware claim advertising and public relations efforts by the group have contributed to those comments. Citizens responded by saying that polls of Delaware residents indicate strong support for the bill
“The message that the courts can take away a privately-held company in Delaware is being sent across the nation,” said Coffey. “Delaware voters want lawmakers to support policies that provide comfort to businesses that Delaware is still the best state to incorporate. The PAC will help advocate for Delaware voters and make sure that elected officials are responsive to their concerns.”
Citizens for a Pro-Business Delaware is a group made up of more than 2,200 members including employees of TransPerfect as well as concerned Delaware residents, business executives and others.
