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Exxon gets shareholder approval for Texas legal move

Exxon Mobil's shareholders approved its plan to relocate to Texas on Wednesday, marking a victory for the U.S. top oil producer. Two leading proxy advisory firms had advised investors to reject the proposal.

Oil producer is incorporated under New Jersey law, but company headquarters are in Texas. The company said that moving its legal residence to the state made sense and was more logical for the business.

Other companies have also recently moved their operations to Texas, including SpaceX and Tesla. Texas law passed last year improved legal protections in many ways. One of them was allowing businesses to set stock ownership levels for lawsuits. Exxon, when it announced its plans to move its state of incorporation from New Jersey - to Texas - in March, said that it would not be raising its ownership thresholds to allow for shareholder lawsuits. It argued Texas officials had a "better understanding" of its business.

The company stated in its proxy statement that "the Board believes Texas legislators and judges who may make decisions impacting?Exxon Mobil? are generally more knowledgeable about our business?and operations."

Exxon shareholders rejected on Wednesday a proposal to include more 'automatic voting options' to Exxon’s?retail investors voting program. Exxon's Board opposed the proposal. Reporting by Sheila Dang and Arunima in Bengaluru, editing by Joyjeet Das.

(source: Reuters)