Pickens Backs Pro-Shareholder Laws

Texas speculator T. Boone Pickens said Monday that his United Shareholder Assn. will spearhead a campaign by shareholders to change their firms’ corporate bases from Delaware to states whose laws favor broader shareholder rights.

In remarks to group members in Washington, Pickens said his group will encourage states to adopt laws guarding against management entrenchment and shareholder disenfranchisement.

If successful, United Shareholders will then urge holders to introduce proposals to change companies’ state of incorporation to those states with more favorable laws.

“Texas may be the first to consider a pro-shareholder law,” Pickens said.

The Delaware Legislature earlier this year adopted a law making it harder to succeed in a hostile takeover bid against a company incorporated in the state.

‘Abandoned Shareholders’

Delaware has long been a haven for corporate basing because of its favorable stance toward business.

“Delaware got the corporations there for the reason that they did support shareholders rights,” Pickens said.

But after adoption of the takeover law, “they’ve abandoned shareholders and gone to managements,” Pickens said.