DoorDash is set to become a Nevada-incorporated company.
DoorDash plans to move its incorporation to Nevada, leaving Delaware. Shareholders and cofounders back the strategic legal shift.
DoorDash, the popular food delivery company, announced on Tuesday that it plans to reincorporate its business in Nevada. The decision was made by shareholders who control 54.2% of the company's voting power, following a recommendation from the company's board. DoorDash cited Nevada's more predictable legal environment as the primary reason for the move, which is the latest in a string of companies leaving Delaware, the traditional incorporation hub.
The company's management and board believe that Nevada will provide the best platform for pursuing its corporate strategy. Despite Delaware's long-standing reputation as a favorable legal environment for businesses, recent years have seen growing concerns about the legal landscape there, including unpredictable court rulings and high-profile litigation cases involving controlling stockholders.
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