SIOUX FALLS SD (KELO) -- Daktronics is taking steps to move its legal jurisdiction. The company announced it is working to change its incorporation jurisdiction to the state of Delaware. Such an action means that if approved, Delaware would be considered the home state of Daktronics. Luverne resident recalls Selma march "Delaware is the legal domicile for most large, publicly traded companies, and its corporate law is well understood, clear and predictable and provides strong shareholder rights and protections," Reece Kurtenbach, Daktronics’ Chairman, President and Chief Executive Officer said in a news release. According to Harvard Business Services Inc. "One of the main reasons why companies incorporate in Delaware is the legal and liability protection of established corporate laws. Delaware's well-established and business-friendly legal framework is designed to provide a clear and flexible environment for businesses to operate." This change does not impact Daktronics’ business operations in South Dakota. Its corporate headquarters, along with its important manufacturing, engineering, sales and service facilities and the majority of its employees, will remain in South Dakota, a news release says. The change is pending upon the approval of the company's shareholders. Last month, Alta Fox one of the largest investors in Daktronics called for a change of leadership because of the company's underperformance and leadership ignoring recommendations from Alta Fox to improve its financial performance. It wants to vote on new members of the board of directors as well. Industry publications say that one reason to incorporate in Delaware is to strengthen shareholder rights. The state of Delaware says on its website that "On balance, there is arguably no other U.S. state that provides stockholders with more rights and flexibility than Delaware grants stockholders, nor whose courts have so consistently vindicated the rights of stockholders in litigation. By contrast, a majority of Delaware’s sister states compete with Delaware by being more protective of managers." In a Dec. 11 news release, Daktronics said that Alta Fox’s recent criticism is because it demanded that the company retire the debt at a price more than three times its face value. The board rejected the Alta Fox proposal as “too costly for shareholders,” according to the news release.