Elon Musk-Led Overhaul of Delaware Business Law Upheld by State Court

The Delaware Supreme Court upheld the constitutionality of an overhaul of state law that governs most major US corporations and was fueled by Elon Musk, handing a win to company founders, insiders and private equity owners who sought less restrictive business rules.

In a ruling Friday, the court concluded that controversial changes to the law had complied with the state’s constitution and didn’t strip power from Delaware Chancery Court — the nation’s premier business-litigation venue — to grant relief if companies breach their fiduciary duty.